Virgin Atlantic Airways and Virgin Group founder, Sir Richard Branson.
Craig Barritt
LONDON – Virgin founder Richard Branson is trying to elevate $460 million to create a brand new particular objective acquisition firm, or SPAC, turning into the most recent in a line of rich traders to take action.
In a filing with the Securities and Exchange Commission on Wednesday, the corporate stated it meant to promote 46 million items at $10 apiece.
Branson is called because the founding father of VG Acquisition, which is registered on the Cayman Islands. Within the submitting, the corporate stated it plans to make use of the cash raised by way of the preliminary public providing to amass a enterprise that’s already in operation.
SPACs, often known as clean examine corporations, are arrange for the only objective of buying one other firm and itemizing it on the inventory market, normally inside a few years. Greater than 50 SPAC choices have taken place to this point this yr, elevating over $20 billion, Goldman Sachs stated August. The funding financial institution stated SPAC choices have been up 145% on the identical interval a yr in the past.
The SEC-filing for VG Acquisition states that the pandemic has led to “a uncommon alternative to put money into essentially robust goal companies at enticing valuations.”
The corporate stated it had not but determined which enterprise it desires to purchase. Nonetheless, over the subsequent two years, it’s going to look for a corporation that operates in one of many Virgin Group’s core sectors resembling journey, monetary companies, well being, expertise, music, media, cellular and renewables.
Branson’s funds have been stretched by the Covid-19 pandemic and in April he urged he might must mortgage his dwelling within the British Virgin Islands.
In a submitting in Might, it was revealed that Branson was getting ready to promote as much as $504.5 million of his stake in Virgin Galactic.
“Virgin intends to make use of any proceeds to assist its portfolio of world leisure, vacation and journey companies which have been affected by the unprecedented influence of Covid-19,” the corporate stated in a press launch.
There have been a variety of high-profile SPACs created in current months, with billionaire Invoice Ackman elevating $four billion for his in an preliminary public providing in July.
In the meantime, Acquisition agency Apollo World Administration filed Wednesday to lift $750 million by way of a blank-check firm known as Apollo Strategic Development.
