Charles Ergen's CONX IPO Downsized
Source: Pixabay

Why Did Charles Ergen's CONX IPO Get Downsized?

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CONX Corp., a blank-check company formed by Charles Ergen, downsized its IPO on Monday, Oct. 26. The company plans to list its stock on the Nasdaq under the ticker symbol "CONXU." Has the CONX IPO date been set?

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When is the CONX IPO date?

The CONX IPO date hasn't been set yet. CONX is a blank-check company formed by billionaire Charles Ergen. It's the latest SPAC (special-purpose acquisition company) to downsize its offering size. CONX plans to raise $750 million and offer about 75 million shares in the IPO priced at $10 per share. Previously, the company aimed to raise $1 billion and offer 100 million shares at $10 per share. Deutsche Bank Securities is the sole underwriter on the deal.

In the SEC filing, CONX said, “Our selection process will leverage our management team’s broad and deep relationship network, unique industry experiences and proven deal sourcing capabilities to access a broad spectrum of differentiated opportunities.” CONX also said, “This network has been developed through our management team’s extensive experience and demonstrated success in building businesses through organic growth and realization of strategic opportunities in the TMT industry.”

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Charles Ergen's CONX IPO Downsized
Source: Pixabay

Another blank-check company, Bluescape Opportunities Acquisition Corp. also cut its offering on Oct. 26. The company plans to raise $575 million from the previous goal of $700 million. Acies Acquisition Corp., a blank-check company formed by former MGM Resorts International CEO James Murren, also cut its offering. Two SPACs formed by venture investor Chamath Palihapitiya upsized their offerings earlier in October.  

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What is a blank check IPO?

A blank-check company is a public entity without a business plan or purpose. The company is formed specifically to raise capital through an IPO with the intention of merging with or acquiring an existing company. SPACs are a type of blank-check company.

Charles Ergen's CONX IPO Downsized
Source: Pixabay
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Who is Charles Ergen?

Charles Ergen is the co-founder and chairman of satellite TV service provider Dish Network. Ergen also serves as the chairman of satellite operator EchoStar Corp. Currently, Dish has about 11 million customers. EchoStar, which was spun off from Dish in 2008, has about two dozen satellites in space. As a condition of the T-Mobile-Sprint merger deal this year, Dish is deploying a 5G wireless network to cover at least 70 percent of the U.S. by 2023.

What is Charles Ergen’s net worth?

Charles Ergen is an American billionaire businessman born on March 1, 1953. His current net worth is $7.5 billion, according to Forbes.

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