Developer Palihapitiya Spac wants to raise $ 800 million to target biotech companies

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Chamath Palihapitiya, one of the figures most closely linked to the insanity of empty check companies, is raising $ 800 million to cash in on the four money that will drive biotech businesses, entering a market crash that has failed in recent months.
The plans of the new companies to achieve special goals, revealed in the securities presentations, showed that the billionaire investor and former Facebook executive is working with new partners on his next project. Spac collects the money in an IPO and then seeks out a private business to acquire it.
The four new Spacs, all with names that begin with “DNA,” will partner with Kishen Mehta, portfolio manager for Suvretta Capital Management.
Palihapitiya has a long-standing collaboration Ian Osborne, a British investor. The couple launched six Spac vehicles together under the name Social Capital Hedosophia and have taken four companies to public through reverse mergers. Palihapitiya will continue to work with Osborne, a person familiar with Social Capital said.
Another difference is that Morgan Stanley will advise Palihapitiya on his latest project. Spac’s serial sponsor was based on the Swiss lender Credit Suisse.
Palihapitiya has also decided to reject orders from its latest Spac series, which will be a test case for investors ’appetite for vehicles without such sweeteners for early helpers.
Sponsors have been criticized for distributing free orders to early investors, even if they sell the company, to be held back. The guarantees, which become a stake in the new company at a strike price of $ 11.50, tend to dilute the shareholders who then buy them.
The time has come for Palihapitiya’s new Spacs difficult connection for a market that is struggling in the face of greater regulatory scrutiny and declining investor confidence.
Palihapitiya, what some call the “Spac King,” has become a target of criticism while empty checks are also being used by the company to promote its followers to one of its deals. A Palihapitiya representative declined to comment on the securities presentation.
They have come after a two-month deadline for the newly launched Spac lists slow down drastically reduced U.S. credit for hedge funds that provided a large portion of capital to U.S. regulators and banks.
According to data provider Dealogic, 32 Spacs were publicly listed in April and May, down from 298 in the first quarter of 2021. According to Refinitiv data, more than 400 vehicles launched since the beginning of 2019 are still looking for companies to acquire.
Miles Kruppak additional news of San Francisco
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