SoftBank’s proposed new SPACs intend to raise $200 million and $350 million, respectively.
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SoftBank on Friday filed for two more SPACs, or special purpose acquisition companies – SVF Investment Corp. 2 and SVF Investment Corp. 3—in the latest sign of robust interest from investors and entrepreneurs in “blank check” stocks used an alternative method for companies to reach the public market.
SoftBank’s initial SPAC, SVF Investment Corp. (SVFAU), has proven popular with investors. In that deal, the offering raised $525 million with an offering of 52.5 million units at $10 apiece, with each unit consisting of one stock and one-fifth of a warrant to buy another share at $10. As of Friday, the units were trading at $13.40, for a gain since inception of 34%. SVF has yet to announce a merger partner. In that offering, SoftBank (SFTBY) committed to buying up to $300 million worth of stock and warrants in a separate private placement concurrent with the offering. They have made similar promises for the new SPACs.
The two new proposed SPACs are smaller than the original one. SVF Investment Fund 2 intends to raise $200 million, via the sale of 20 million units at $10 each. SVF 3 plans to raise $350 million via the sale of 35 million units at $10 each.
In a note to investors in the SEC filings for all three deals, SoftBank says that the SPACs “will bridge SoftBank’s private and public investing strategies by enabling us to partner with a fast-growing, IPO-ready technology company. We believe that we have access to a wide range of compelling investment opportunities through our broad international presence and deep local networks.”
The message adds: “We believe our SPAC [they make the statement in all three cases] provides public investors with a distinct opportunity to benefit from the growth of a leading technology company that will generate long-term shareholder value. We are backing our belief by committing a significant amount of capital to it.”
Based in Tokyo, SoftBank is also the parent of the $100 billion SoftBank Vision Fund, the world’s largest venture fund. Among other holdings, the company remains the largest investor in both Alibaba (BABA) and SoftBank Corp. , a Japan-based wireless company.
Write to Eric J. Savitz at [email protected]
