Social Capital to Raise $720 Million in Upsized IPO

(Bloomberg) -- The parent of a blank-check company that helped Virgin Galactic Holdings Inc. go public has increased the size of a new U.S. initial public offering to raise $720 million, according to people with knowledge of the matter.

Social Capital Hedosophia Holdings Corp. III is expected to begin trading Wednesday on the New York Stock Exchange, according to deal terms reviewed by Bloomberg. It had earlier planned to raise $600 million selling 60 million units to acquire targets in the technology sector, according to filings.

Some biotechnology and special purpose acquisition companies, also known as SPACs, have managed to list on public markets since the door slammed shut on U.S. IPOs in mid-March as the coronavirus pandemic sent markets roiling. Oric Pharmaceutials Inc. is planning to price its $80 million share sale Thursday, Bloomberg News has reported.

Thirteen blank-check companies have raised a combined $3.9 billion selling units in the U.S. this year, representing a quarter of this year’s IPO volume, according to data compiled by Bloomberg.

Social Capital, which initially planned to raise $900 million from a pair of SPAC listings on March 16, postponed the offering after the stock market experienced its biggest decline since 1987, people with knowledge of the matter said at the time. The parent company is a partnership between venture capitalist Chamath Palihapitiya and longtime investor Ian Osborne.

The first Social Capital Hedosophia blank-check company raised $600 million in 2017. It agreed in July to merge with Virgin Galactic. The second company which is still on hold, was expected to raise $300 million, earlier filings show.

©2020 Bloomberg L.P.

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