FinTech: Blank Check Company Raises $230M In SPAC IPO

September 30, 2020 | FinTech, News, Venture Capital

FinTech Acquisition Corp IV intends to acquire fintech companies.

Fintech Acquisition Corp. IV (NASDAQ: FTIVU) began trading on the Nasdaq from September 25 after completing its IPO. It issued 23,000,000 units at $10.00 per unit, including 3,000,000 units issued under the underwriters’ over-allotment option. (Intrado)

In its filing with the SEC dated September 8 the special purpose acquisition company (SPAC, also known as “blank check” company) said it intended to acquire, merge, or otherwise combine with businesses that provide technological services to the financial services industry. It will focus on businesses that provide data processing, storage and transmission services, databases and payment processing services.

The Issue

Each unit issued in the offering consists of one share of the Company’s Class A common stock and one-third of one warrant. Each whole warrant is exercisable for one share of Class A common stock at an exercise price of $11.50 per share.

FinTech Acquisition Corp. III

FinTech Acquisition Corp. III (NASDAQ: FTAC) was a special purpose acquisition company formed to enter into a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses, with a focus on the financial technology business.

The company raised $345,000,000 in its initial public offering in November 2018.

Last month, FTAC announced it had entered into a merger agreement with Paya, a leading integrated payments and commerce solution provider.

The merger transaction envisaged a combined company enterprise valuation of $1.3 billion. Paya’s existing majority equity holder GTCR, a leading private equity firm, will remain the Company’s largest stockholder.

SPACs trend

Blank check companies such as FTIVU have gripped investors’ interest. As of September 24, according to Bloomberg, these vehicles have raised over $41 billion.

That’s more than in the entire preceding decade.

The unrelenting boom in SPACs has drawn the attention of the SEC, particularly regarding the manner of disclosure of their sponsors’ pay structures.

Related Story:   VW And Bill Gates-backed QuantumScape To Go Public Through SPAC

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