Softbank files for double SPAC to raise USD630 million

SoftBank Group Corp., the Japanese technology conglomerate, filed back-to-back SPAC registration statements for two new blank-check companies. In a regulatory filings citing, it plans to raise as much as USD630 million through two more blank-check companies, capitalising on record investor demand for the vehicles.

In January, the Japan-based Softbank, led by Masayoshi Son, has been a major tech investor through its Vision Fund, filed its first SPAC, SVF Investment Corp, raised USD525 million through its IPO. Subsequently, later in the month, Softbank also filed to raise USD200 million through the IPO of its second SPAC, LDH Growth 1.

The vehicles have been a popular way for venture-backed startups to list on the public markets. According to data compiled by Bloomberg, more than USD35 billion has been raised by the 117 SPACs that have gone public on US exchanges this year.

According to filings with the Securities and Exchange Commission, the new Softbank’s vehicles, SVF Investment Corp 2 and 3, will target the same diverse areas as the first which include mobile communications and artificial intelligence. SVF 2 is USD200 million and SVF Investment Corp 3 is a USD350 million vehicle, both would be listed on the Nasdaq.

For SVF Investment Corp 2 and 3, each unit of the SPAC will consist of one share and one-fifth of a warrant. Softbank Investment Advisers, which oversees the company’s Vision Fund, is the backer of the two new SPACs.