On Dec. 18, Social Capital Hedosophia Holdings Corp. III (IPOC) stock rose by 9.6 percent, while the S&P 500 lost 0.4 percent. The stock has risen $1.06 from its previous closing price of $11.02 on a volume of 19,136,900 shares. In the past month, the S&P 500 has risen by 12.8 percent, while IPOC stock has gained 24.8 percent. Is IPOC stock a buy or sell at this price? What can investors expect from Social Capital Hedosophia Holdings?
What to expect from the Social Capital Hedosophia III SPAC
Social Capital Hedosophia Holdings Corp. III is a SPAC. The company was created for the purpose of effecting a share exchange, share purchase, merger, asset acquisition, or similar business combination with one or more businesses.
Clover Health intends to go public through a partnership with Social Capital Hedosophia Holdings Corp. III. Clover Health is a Medicare insurance company. The news about the merger between the SPAC and Clover Health first surfaced in October. The deal is worth $3.7 billion, including $1.2 billion in cash proceeds. The new entity will start trading on Nasdaq under the ticker symbol "CLOV" on January 8, 2021. The deal is subject to final shareholder approval at Social Capital Hedosophia’s general meeting scheduled on January 6, 2021.
Who owns Social Capital Hedosophia III?
Social Capital Hedosophia Holdings Corp. III was founded in October 2019 by Chamath Palihapitiya and Ian Osborne. The company is headquartered in Palo Alto, Calif.
Social Capital Hedosophia III and dividends
Currently, Social Capital Hedosophia Holdings Corp. III doesn’t pay a dividend.
Is IPOC stock a buy?
IPOC stock was up 7.9 percent at $13.03 as of 12:02 p.m. ET on Dec. 21. IPOC stock looks like a buy based on the merger news. The stock can make a new 52-week high this week because Clover Health is a rapidly growing healthcare company. In 2019, Clover Health generated sales of $457 million. The company expects to generate sales of about $880 million in 2021 and $1.7 billion in 2023.