The SPAC mania continues unabated, with new SPACs being filed with the SEC on an almost hourly basis at instances.
SoftBank, the Japanese telecom conglomerate which has also been working the gigantic Vision Fund and its successor, doesn’t want to be uncared for. Yesterday, it filed back-to-back SPAC registration statements for two new blank-take a look at companies.
SVF Funding Corp 2 is $200 million and SVF Funding Corp 3 is a $350 million automobile. Both SPACs have a standard roughly 15% over-allotment option, which means that their final sizes will seemingly cease up at $230 million and $400 million respectively assuming that the underwriters take their option (quantity three has a a bit of smaller over-allotment within the occasion you’re checking my math).
One fascinating factor of each SPACs is that they have what is famous as a forward purchasing agreement connected to SoftBank’s Vision Fund 2. That agreement allows the 2nd Vision Fund to purchase shares into these SPACs when they start their trade combinations with their target startups, essentially giving it the appropriate to purchase into the mergers. The Vision Fund has a $100 million agreement with SVF 2, and a $150 million agreement with SVF 3.
As with all SPACs, a registration statement is merely a submitting of an draw to raise cash, although these days, the vast majority of filings are later consummated.
As the numbering indicates, SoftBank had an earlier SPAC that it filed in December and officially closed on January 7 of this year. That automobile targeted a total fundraise of $604 million including the underwriters’ over-allotment option. It also incorporated a $250 million forward purchase agreement with the 2nd Vision Fund similar to these latest two autos.
What are these SPACs taking a stamp for? Neatly, according to the filings, “We intend to name, acquire and manage a trade in a expertise-enabled sector where our management team have differentiated trip and insights. Relevant sectors may embody, however are now now not diminutive to, cellular communications expertise, artificial intelligence, robotics, cloud technologies, software broadly, computational biology and other data-pushed trade items, semiconductors and other hardware, transportation technologies, client web and financial expertise.”
That appears to conceal a lot, however apt in case, the filings display that “Then again, we may consummate a transaction with a trade in a diversified or related industry.” So basically anything.
There is rarely always a timeline but for when the SPACs may potentially stop, however typical timing is 4-8 weeks given market averages.