The venture capital fund, Ribbit Capital, is planning to use a ‘blank check’ initial public offering (IPO) for raising $350 million.
On August 25, the venture capital fund submitted the S-1 form to the US Securities and Commission Exchange (SEC), which notified that Ribbit Capital has registered its Ribbit Leap as the Special Acquisition Company (SPAC).
SPAC To Start Merging
As per the SEC filing, currently, the company is not being operated, but soon after it merges or obtains any other company, the operations would get started Further, it has been mentioned,
“We have not selected any business combination partner and we have not…initiated any substantive discussions with [any parties yet].”
Presently, Ribbit has not disclosed what SPAC’s aim would be, however, it is being assumed that newly formed ‘blank check’ company might start working with cryptocurrency and blockchain industry.
Ribbit Capital Inclination Towards Crypto-Related Firms
The Cayman Islands-based Ribbit Capital Long-Term Equity Acquisition Pool has cultivated a $2.6 billion portfolio. The company has even invested in some of the major crypto and financial startups which include Coinbase, Revolut, CRB Group, and many more.
The report further states that the Ribbit Capital is a bit more inclined towards the crypto and the blockchain industry, therefore, in the year 2019, when crypto wallet Bobby Lee organized a seed funding round the venture capital company led it.
According to the report, to raise $350 million, Ribit Leap has planned to offer apiece in the IPO for $10. Each of the IPO units would have one share and one-fifth of a warrant.
The report further mentioned that JPMorgan Chase has already joined Ribbit’s SPAC as the sole book-runner for the IPO.
As per the documents, JPMorgan has a target to bring in the total capital of $402.5 million and for doing so, it can also issue 15 percent more shares.
The report adds that Ribbit Lead might list its shares on the New York Stock Exchange.