SoftBank files for two more SPACs seeking to raise $630 million
New effort follows debut of Japanese company’s $525 million blank-check vehicle.
SoftBank Group Corp. plans to raise as much as $630 million through two more blank-check companies, capitalizing on record investor demand for the vehicles.
The Tokyo-based technology conglomerate said it would create the special purpose acquisition companies less than two months after it filed to create a $525 million blank-check company. SPACs look to merge with private companies, letting them become publicly traded while avoiding some of the uncertainty of an initial public offering. The vehicles have become a popular way for venture-backed startups to list on the public markets. More than $35 billion has been raised by the 117 SPACs that have gone public on U.S. exchanges this year, according to data compiled by Bloomberg.
The new SoftBank vehicles, SVF Investment Corp. 2 and 3, will target the same diverse areas of technology as the first, including mobile communications and artificial intelligence, according to filings Friday with the Securities and Exchange Commission. Because the SPACs are different sizes, they can work with companies of different maturity.
SVF 2 has entered into a forward purchase agreement in which it has committed $100 million to $150 million of capital for when it combines with another company, its prospectus shows. SVF 3 has entered into a forward purchase agreement in which it has committed $150 million to $200 million of capital for when it combines with another company, its prospectus shows.
For both new vehicles, each unit of the SPAC will consist of one share and one-fifth of a warrant. Citigroup Inc., UBS, Deutsche Bank AG, Cantor Fitzgerald and Mizuho Securities are advising on the listings.
SVF 2’s management committee is led by Munish Varna, a managing partner at SoftBank’s Vision Fund, while SVF 3’s management committee is led by Ioannis Pipilis. SoftBank’s first SPAC is led by Vision Fund Chief Executive Officer Rajeev Misra. Vision Fund Chief Financial Officer Navneet Govil serves as CFO of all three SPACs. All are overseen by SoftBank Investment Advisers, which also runs the company’s Vision Fund.
Having three SPACs launches SoftBank into a growing collection of companies with multiple blank-check vehicles, including the Gores Group and investor Chamath Palihapitya’s Social Capital Hedosophia.
By Sarah McBride