Happy Friday, Rippers fam! We’re one week into October, and it’s already shaping up to be one of the spookiest months of 2020 👻 Our Rippers list today is taking a closer look at some movers in the SPAC market, so let’s get right into it!
📈 For the unacquainted, a SPAC is a blank check company which publicly lists on markets in order to solicit money from investors. Once they have solicited those funds, the money raised goes to acquiring a private company. They then infuse the fundraised money into the private company and swap places. This allows the private company to take the place of the SPAC on the markets. They often get a new ticker too.
Blank check companies have different goals, so it’s important to take a look at what companies they’re looking at acquiring. SPACs come with risks, but let’s take a look at some happenings in the market ⬇️
📱 Social Capital Hedosophia, the capital group which arguably started the SPAC rush with their acquisition of Virgin Galactic in late 2019, is raising money for yet another SPAC acquisition fund. $IPOE is looking to raise $700 million for an initial public offering. Their intended goal is to acquire a tech company and take them public. With the steep size of this offering, they could likely acquire any early-stage tech startup. $IPOE recently made an acquisition of Opendoor through $IPOB , which will bring the real estate digital servicer to public markets.
📺 Martin Luther King Jr. III and Shaquille O’Neal are joining forces to launch a SPAC of their own — Forest Road Acquisition Corp. Though it’s not public or trading yet, their SPAC will aim to make an acquisition in the media sector. They are joined by two former Disney executives. The SPAC filing, which was made today, aims to raise $250 million.
That wraps our ✨last✨ Friday Rippers list for now. Next week, we will be transitioning Friday’s Rippers to Sunday evening. That way we can give y’all waking up Monday morning a list of stocks to keep an 👀 on for the week. We hope this change will help you find new trading opportunities before they even happen. Thanks and see you on Sunday! 🔥🔥🔥