Branson backs New York-listed SPAC aiming to raise $500m
No stranger to the Spac phenomenon taking equity markets by storm, Richard Branson is backing another New York-listed blank-cheque vehicle.
Virgin Group Acquisition Corp III is looking to raise as much as $500m through a public listing, according to a regulatory filing published on Tuesday.
Founded by Branson the company will be led by Josh Bayliss, chief executive of Virgin Group, and its CIO Evan Lovell.
The special acquisition company (SPAC) will sell 50m units priced at $10 per unit on the New York Stock Exchange. The Branson-backed company said it is looking for targets in one of Virgin’s core sectors, including travel and leisure, financial services and health and wellness among others.
Spacs offer a backdoor to a company hoping to list. They raise capital by going public with the purpose of then acquiring an existing company. Terms usually require the vehicles to secure a deal within two years or return the cash to investors.
Branson has already raised millions in Spacs so far taking genetics company 23andme public last month through one of his vehicles.
Blank cheque vehicles have enjoyed popularity in the US – around 180 Spacs have filed in New York alone this year – and European cities are now hoping to get in on the action.
Frankfurt and Amsterdam are both emerging as strong players but London lags behind due to tougher regulatory conditions. Last week a government-backed review into the stock market, led by Lord Jonathan Hill, recommended the regulator loosen restrictions on Spacs in the City.