SoftBank To File For First SPAC IPO Today, Seeking To Raise Up To $600M: Axios

SoftBank Group Corp. SFTBY will be filing for an initial public offering of its first special purpose acquisition company on Monday, Axios reports.

What Happened: The Japanese conglomerate is looking to raise between $500 million and $600 million in the IPO, people familiar with the matter told Axios.

SoftBank Investment Advisers, the $100 billion vision fund manager, will reportedly sponsor the SPAC seeking to invest in a new company that is not part of SoftBank’s current portfolio.

The Japanese company has plans for at least two more SPACs in the vine, as per Axios. The leading book-runners for the issue are Goldman Sachs Group Inc GS and Citigroup Inc C.

Why Does It Matter: Japanese billionaire and CEO of SoftBank, Masayoshi Son, is well-known for backing technology startups like the ride-sharing app Uber Technologies Inc UBER and workspace software company Slack Technologies Inc. WORK.

This is the first instance when the Son-led SoftBank will raise funds from investors to set up a blank check company. Typically, SPACs target privately held companies for acquisition and take them public through a reverse merger.

Sanjeev Misra, the CEO of Vision Fund, disclosed plans to launch a blank check company in October.

At the time, Misra hinted that an official announcement would be made in two weeks. The reason for the delay is unclear.

Price Action: SFTBY stock closed 0.79% lower at $40.18 on Friday.

Related News: 2020 Is The Year Of The SPAC, But Goldman Sachs Says 2021 Could Be Even Bigger

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