NEW YORK, Aug 25 — A blank-cheque company backed by former US House Speaker Paul Ryan said yesterday it plans to raise US$300 million (RM1.25 billion) in an initial public offering, joining the recent frenzy of Wall Street deal-making with SPACs.
Executive Network Partnering Corp (ENPC) said in a regulatory filing it is aiming to sell 12 million CAPS, or "capital which aligns and partners with a sponsor," on the New York Stock Exchange at a maximum price of US$25 per CAPS.
Each CAPS represents one share of Class A common stock and one-quarter of a redeemable warrant, according to ENPC's filing with the US Securities and Exchange Commission.
Ryan will be appointed chairman of the company's board, ENPC said. ENPC's CAPS will be listed on the New York Stock Exchange after the IPO.
Ryan is the latest among a number of high-profile public figures and investors to join the rush for blank-check firms that has gripped US capital markets in the recent weeks and months.
A number of big-name financiers and investors such as Bill Ackman, Michael Klein and Chamath Palihapitiya have raised billions of dollars for these shell firms through IPOs, with the aim of then combining with real companies in the next couple of years.
A special purpose acquisition company (SPAC) is a shell company that raises money through an IPO to buy an operating company, usually within two years.
However, according to ENPC's filing, its structure is slightly differently from a typical SPAC, as CAPS minimise dilution and create “a process which is comparable to a traditional initial public offering.” — Reuters
