SVF Investment Corp, a blank check company backed by SoftBank Group, has recently sold shares at $10 per unit in its IPO (initial public offering) to raise $525 million.
SVF Investment has been functioning under the support of SoftBank Investment Advisers. The company runs the $100 billion fund and revealed plans to invest in the existing or new portfolio company. Additionally, it was developed under the specific purpose of entering effective mergers or conducting other similar businesses.
As per the statement made by SoftBank, SVF Investment will target to make broader investment in sectors such as robotics and AI (artificial intelligence) to drive its business strategy. The launch of SPAC (special purpose acquisition) represents an appeal to the investors, following previous attempts to raise capital for a 2nd Vision Fund, which was floundered due to missteps.
SPACs have become a popular IPO alternative for a variety of companies as it enables them to go public with more certainty and less regulatory scrutiny over the valuation to be attained and funds to be raised.
SVF Investment has stated that the units will be listed from January 2021 on the Nasdaq under ‘SVFAU’, along with the Class A ordinary shares to come under ‘SVFA’. Cantor Fitzgerald & Co, Deutsche Bank Securities Inc, and Citigroup Global Markets Inc are functioning as the book-running managers in the initial public offering. The company also has cited that its SPAC will bridge the public and private investing strategies of SoftBank, as it will help partner with the rapidly expanding and IPO-ready technology company.
Each unit of SVF Investment, which consists of one Class A ordinary share & 1/4th of a redeemable warrant, has been priced at $10. Furthermore, SoftBank has reportedly stated that its IPO pricing is an estimate for the calculation of the SEC registration fee.