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VG Acquisition Corp, a “blank-check” firm based by the chief of Virgin Group, filed on Wednesday for an preliminary public providing on the New York Stock Exchange.
The aim: increase $400 million and use that cash to purchase undervalued American and European shopper companies in sectors the place Virgin has had success, together with journey, leisure, leisure and monetary providers.
“We believe that the Covid-19 crisis has caused temporary dislocations in several of our focus sectors, creating a rare opportunity to invest in fundamentally strong target businesses at attractive valuations,” the corporate mentioned in a submitting with the US Securities and Exchange Commission. A goal has not but been chosen, the corporate mentioned in its submitting.
In the primary eight months of this yr, SPACs raised over $33 billion throughout 81 IPOs, greater than double the proceeds raised in 2019, based on Deloitte.
“This surge has been driven by the influx of high-profile investors and management teams entering the SPAC space, coupled with an abundance of uninvested capital that had largely been sitting out the first half of 2020,” the skilled providers agency mentioned in a report this month.
Betting on Branson
In May, Virgin Group was compelled to relinquish management of Virgin Galactic to boost a whole bunch of thousands and thousands of {dollars} to fund different group corporations, SEC filings present.
With a lot consideration on current Virgin Group corporations, Branson might have little time to hunt for new prospects.
VG Acquisition Corp has given itself two years to discover a deal and isn’t limiting itself to any explicit sectors, telling buyers that it may purchase one thing exterior of Virgin Group’s core classes if it finds the suitable alternative.
“We remain open to the significant number of opportunities that we expect will present themselves upon completion of this offering, particularly given our founder’s public profile and the positive attention he generates within the business community,” it mentioned.
Branson has a fame for taking daring dangers and looking for to disrupt sectors with established operators. Having began out as a mail order file retailer in 1970, the Virgin model is now hooked up to greater than 40 companies worldwide, which collectively generated $22 billion of income of their newest monetary yr.
— Michelle Toh contributed reporting.
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