Hicks SPAC raises $552m in record IPO(4)

Tom Hicks’ SPAC has raised $552 million in an initial public offering said to be the largest of its kind to date. The blank check vehicle will target one or more non-energy businesses in the US or Canada.

Hicks Acquisition Company I, Tom Hicks’ special purpose acquisition company, has raised $552 million (€368 million) through an initial public offering. It is the biggest IPO to date for a blank-cheque pool, according to a statement.

Tom Hicks

The SPAC sold 55,200,000 units on the American Stock Exchange at $10 per unit, which consisted of one share of common stock and one warrant per unit sold.

The vehicle also raised $7 million through the private sale of 7,000,000 warrants to HH-HACI, an affiliate of Hicks’ private investment company, Hicks Holdings. Citi was sole bookrunning manager of the IPO, and Lazard Capital Markets and Ladenburg Thalmann & Co were co-managers.

The SPAC will acquire one or more non-energy businesses in the US or Canada through a merger, capital stock exchange, asset acquisition, stock purchase, reorganisation or similar business combination. The vehicle has 24 months to complete an acquisition or be liquidated.

Tom Hicks was not available for comment due to “quiet-period reasons”, a spokesman said.

The SPAC is the the latest in a string of moves Hicks has made since stepping down in 2005 from the Dallas buyout firm he founded, Hicks, Muse, Tate & Furst. That firm is now called HM Capital Partners, and is seeking roughly $1 billion for its latest fund.

High-profile former private equity general partners, such as Michael Gross from Apollo Management, have become affiliated with SPACs, which have acquired companies such as Jamba Juice and American Apparel.

Nicholas Berggruen’s Freedom Acquisition Holdings previously held the title of largest SPAC IPO, when Berggruen raised $528 million last December to take European hedge fund GLG Partners public through a reverse merger. Former US vice president Dan Quayle and former Notre Dame football coach Lou Holtz are also planning to raise $500 million for a SPAC, according to The Los Angeles Times.