TPG launches $400m IPO for SPAC

TPG Pace Holdings will target underperforming companies in the technology, media or business services sectors.

TPG Pace Group has launched a $400 million IPO for its new “blank cheque” special purpose acquisition company, TPG Pace Holdings.

The Cayman Islands exempted company was formed in February to identify and acquire businesses that are “better suited to generate strong returns in a public market environment”. It will aim to enter a merger, stock purchase or similar combination with one or more underperforming companies in the technology, media or business services sectors, according to a filing with the Securities and Exchange Commission.

This is the second SPAC listed by TPG, following a $450 million IPO for a similar company, Pace-I, in September 2015. The business merged with Caribbean, Jamaican and Mexican resort chain Playa Hotels and Resorts, which trades on the NASDAQ capital market, in March this year.

TPG Pace Holdings priced 40 million units at $10.00 each. The units were listed on the New York Stock Exchange on 28 June 2017 and had reached $10.25 by close.

Deutsche Bank Securities, Goldman Sachs and JPMorgan are serving as joint book runners for the offering.

In other news, TPG has appointed Ajay Kanwal, former regional chief of ASEAN and South Asia at Standard Chartered, as a senior advisor.