Softbank-backed blank cheque firm eyes $200m stock market float
A blank cheque firm backed by a top Softbank executive is looking to raise as much as $200m (£146m) in an initial public offering.
LDH Growth Corp I, led by Softbank chief operating officer Marcelo Claure and controlled by an affiliate of the Japanese conglomerate, today said it planned to sell 20m shares units of shares and warrants at $10 each.
The move comes amid a boom in blank-cheque firms, also known as special purpose acquisition companies (Spac).
Spacs use money raised through a stock market float to acquire a private company, which becomes public following the merger.
The technique is popular among companies looking to go public with less regulatory scrutiny. Spacs raised $82bn through IPOs last year, according to data from Dealogic.
LDH Growth said it would look to merge with companies focused on Latin America and Hispanic populations.
“Growing up in Bolivia, I have witnessed firsthand the innovation and passion of the people in Latin America. I started my first business, Brightstar, in the region,” said Claure, who will serve as chief executive of LDH Growth.
The planned float comes shortly after another Softbank-backed firm, SVF Investment Corp, raised roughly $525m through an IPO earlier this month.
Earlier today London Stock Exchange boss David Schwimmer said the City should replicate New York’s success with blank cheque companies as a way of boosting London’s attractiveness as a financial hub after Brexit.
LDH Growth’s shares will be listed on the Nasdaq. Citigroup and JP Morgan are acting as underwriters on the listing.