Tech SPAC Social Capital Hedosophia II prices upsized $360 million IPO at $10

Social Capital Hedosophia Holdings II, the second blank check company formed by Social Capital and Hedosophia targeting a US tech business, raised $360 million by offering 36 million units at $10. The company raised $60 million more than expected. Each unit consists of one share of common stock and one-third of one warrant exercisable at $11.50.

The SPAC’s pricing comes on the heels of last week’s IPO of Social Capital Hedosophia III (IPOC.U), which also upsized its deal by 20%, raising $720 million to focus on acquiring a non-US technology business. Both SPACs originally filed with 1/4 warrants, before improving IPO terms to include 1/3 warrants amid the market selloff.

Another large SPAC transaction made headlines last week when Diamond Eagle Acquisition completed its merger with DraftKings (DKNG), whose common shares closed Monday at a 95% premium to the original $10 offer price.

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This SPAC is a joint venture between Chamath Palihapitiya’s Social Capital and Ian Osborne’s Hedosophia. The partnership’s first SPAC, Social Capital Hedosophia, completed its business combination with Richard Branson’s human spaceflight company Virgin Galactic (SPCE) in October 2019; the volatile stock closed Monday 79% above its $10 offer price.

The primary shareholder SCH Sponsor II (20% post-IPO stake) is a vehicle controlled by¬†Chairman and CEO Chamath Palihapitiya and President and Director Ian Osborne. Palihapitiya founded Social Capital in 2011 after serving as VP of User Growth at Facebook, and most recently led the partnership’s first SPAC until it acquired Virgin Galactic, where he continues to serve as a director. Ian Osborne founded Hedosophia in 2012 after leaving DST Global, where he served as Managing Director. Both men hold similar roles at Social Capital Hedosophia III.

Social Capital Hedosophia Holdings II plans to list on the NYSE under the symbol IPOB.U. Credit Suisse acted as lead manager on the deal.The article Tech SPAC Social Capital Hedosophia II prices upsized $360 million IPO at $10 originally appeared on IPO investment manager Renaissance Capital’s web site

Investment Disclosure: The information and opinions expressed herein were prepared by Renaissance Capital’s research analysts and do not constitute an offer to buy or sell any security. Renaissance Capital’s Renaissance IPO ETF (symbol: IPO), Renaissance International ETF (symbol: IPOS), or separately managed institutional accounts may have investments in securities of companies mentioned.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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