Social Capital forms blank check company Hedosophia to buy unicorns
Social Capital Hedosophia Holdings, a blank check company formed to acquire a large private technology company, raised $600 million by offering 60 million units at $10, exceeding its $500 million initial target. Social Capital Hedosophia, which trades on NYSE under the symbol IPOA.U, will operate as a special purpose acquisition company. A SPAC, also known as a blank check company, will use the proceeds to provide a source of liquidity for private companies that will become part of the holding company, and investors can sell their shares on the NYSE. Social Capital CEO and founder Chamath Palihapitiya, who is chairman and CEO of Hedosophoia, told the Financial Times that he was targeting unicorn companies with a valuation of between $3 billion to $20 billion.
