Well, well, well…..looks like Social Capital Hedosophia, will beat Chardan Healthcare 2 to the punch by being the first IPO out the door post-Covid lockdown. Social Capital Hedosophia intends to price the larger of their two deals tonight (IPOC.U), for trading Wednesday, at $600 million in gross proceeds.
If you recall, Social Capital Hedosophia III (IPOC.U) intends to focus on technology companies OUTSIDE the United States, whereas Social Capital Hedosophia II (IPOB.U), the smaller of the two at $300 million, intends to focus on technology companies IN the United States. Perhaps Chamath and the team feel there are better opportunities abroad? Or maybe since it’s the bigger deal, he’s hoping to find an attractive unicorn now that the traditional IPO window is effectively shut. Or it could be they just want to get the harder deal done first (it’s not easy raising $600 million). Probably all of the above.
Regardless, both IPOB.U and IPOC.U, recently re-filed and changed their warrants from 1/4 to 1/3. Plus, both deals are not removing any interest from trust to fund their working capital AND both have the Crescent Term with a threshold of $9.20. These terms should work and pricing seems a lock. The Social Capital team already has a successful deal under their belt and they are a brand name, elite team. And frankly, investors have been sitting on the sidelines for over a month now, so many are eager to put money to work. Look for IPOC.U to price shortly thereafter.