SoftBank's SPAC Files For IPO, May Acquire Vision Fund Portfolio Companies

SoftBank's SPAC Files For IPO, May Acquire Vision Fund Portfolio Companies

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SoftBank Group Corp. (OTC: SFTBY) backed blank check company, SVF Investment Corp, filed the preliminary prospectus with the SEC for an initial public offering on Monday.

SVF Investment Corp plans to list its common stock on NASDAQ under the symbol “SVFA” and raise roughly $604 million from the IPO.

What Happened: SVF Investment will issue 52.5 million units, each consisting of one Class A common stock and one-fourth redeemable warrant. Each complete warrant is exercisable at $11.50. Additionally, underwriters are entitled to an over-allotment option of 7.875 million units.

The primary focus of the SPAC is to acquire companies in the technology domain, including a wide range of sectors like mobile communications, semiconductors and other hardware, software, artificial intelligence and robotics, cloud computing, transportation technologies, consumer internet, fintech, computational biology, and other data-driven business models.

Notably, the filing states that the SPAC may consider acquiring companies from the SoftBank or Vision Fund’s investment portfolios.

Why Does It Matter: The filing clarifies that acquiring SoftBank’s Vision fund companies or any such decision on business combinations will occur after a review by an independent valuation firm.

In 2020, around 235 SPAC’s have collectively raised roughly $75 billion in the U.S., as per the Financial Times based on statistics from Refinitiv.

Reports on Monday revealed SoftBank’s plans to launch the SPAC this week, with Goldman Sachs Group Inc (NYSE: GS) and Citigroup Inc (NYSE: C) acting as the primary book runners.

Price Action: SFTBY shares closed higher by 1.92% at $40.95 on Monday.

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