Credit: Brendan McDermid/Reuters
A blank-cheque company founded by billionaire Sir Richard Branson has raised $480m (£370m), ahead of its admission to the New York Stock Exchange today.
VG Acquisition, a so-called special purpose acquisition company (SPAC), had expanded the size of its offering, having initially said it was planning to raise between $400m and $460m. It said it would now be selling 48 million units, comprised of shares and warrants, at $10 each.
SPACs raise money through IPOs that can then be used to buy private companies, allowing those businesses to do "reverse listings".
They have become popular over the past year, with SPACs having already raised three times more by September this year, than they did throughout 2019.
High-profile names such as hedge fund billionaire Bill Ackman have been attracted to the vehicles, which some have touted as a way to avoid steep banker fees. Earlier this year, experts branded 2020 "the year of the SPAC".
Last year, Sir Richard’s space company Virgin Galactic went public after merging with a SPAC.
The cash raised from the VG Acquisition listing is expected to be used to buy or back consumer-facing companies linked to the Virgin brand, although it has previously said it has not identified a specific target.
In listing documents, it said the pandemic provided “a rare opportunity to invest in fundamentally strong target businesses at attractive valuations”.
Many of Sir Richard’s businesses have struggled during the pandemic — notably his airline and gym ventures, which have been forced to push through sweeping job cuts.
The billionaire sold more than $500m worth of stock in Virgin Galactic to support those businesses. He also had to pull back plans to expand Virgin into the US.
Some have suggested the VG Acquisition IPO could revive such ambitions. Sir Richard is listed as a founder of the firm, although not a director. He will have a 19pc stake in the business.
The fundraising for VG Acquisition was underwritten by Credit Suisse.
Свежие комментарии