Back to News
M&A

Social Capital SPAC Surprises With Oversized IPO

|
Published: June 22nd, 2020
Social Capital Hedosophia Holdings Corp. III responded to unusally strong investor interest by upsizing its IPO from $600 million to $720 million.

Social Capital Hedosophia Holdings Corp. III surprised the special purpose acquisition sector April 22 by electing to price its IPO with an oversize offering of $720 million.

The IPO market has been near frozen between the Covid-19 global pandemic and the plunge in oil prices driving a volatile market. Since April 1, there have been just four IPOs, including Social Capital. Since the beginning of 2020, 27 IPOs have taken place according to Renaissance Capital.

But SPACs have dominated the IPO stats thus far in 2020, with 14 SPAC going public, making up a little more than 50% of the deal volume and raising $4.6 billion in proceeds. Investor appetite for SPACs this year has been so strong that every SPAC pricing included over-allotments.

The last time a SPAC priced an IPO before Social Capital, however, was DFP Healthcare Acquisitions Corp. (DFPHU) on March 13, a $230 million offering. According to PrivateRaise, The Deal’s proprietary data service tracking all U.S.-based SPACS, there are currently 11 SPACs that have registered but are in a holding pattern in terms of going public. That group includes a stablemate to Social Capital III, Social Capital Hedosophia Holdings Corp. II.

Editor’s note: The original version of this article, including advisers and other details, was published earlier on The Deal’s premium subscription website. For access, log in to TheDeal.com or use the form below to request a free trial.

This Content is Only for The Deal Subscribers

The Deal provides actionable, intraday coverage of mergers, acquisitions and all other changes in corporate control to institutional investors, private equity, hedge funds and the firms that serve them.

If you’re already a subscriber, log in to view this article here.

More From M&A

M&A

Review: Thinking Through Contract Drafting

By David Marcus
|
Published: March 25th, 2024
In their new book 'Deals,' Stanford’s Mike Klausner and Harvard’s Guhan Subramanian offer a theoretical framework for thinking about how to write corporate contracts.
M&A

Drinks With The Deal: Cadence's Stone on Marine Corps Lessons

By David Marcus
|
Published: February 29th, 2024
On this week’s episode of Drinks With The Deal, Ryan Stone, a corporate development professional at Cadence Design Systems, discusses how an early stint in the Marine Corps helped shape his career.