Over the last year, several companies have gone public through deals with SPACs (special purpose acquisition companies). LightJump Acquisition, which is a new SPAC, filed for a $100 million IPO on December 18, 2020. When is the LightJump Acquisition SPAC IPO date?
Sometimes, a SPAC is also called a blank-check company. It's designed as an alternate way to take companies to go public instead of the traditional IPO process. The blank-check company has no existing commercial operations and is formed specifically to raise funds through an IPO for the sole purpose of acquiring an existing company.
The top CEOs and famous investors are flocking to the SPAC market. In 2020, about 200 SPACs have been created in the U.S., which raised about $64 billion. DraftKings, Virgin Galactic, and Nikola Motor all went public through SPACs.
LightJump Acquisition's IPO date
LightJump Acquisition plans to raise up to $100 million in an IPO. The blank-check company was created by LightJump Capital. while the IPO date hasn't been set yet, the public listing could happen as soon as this week. The company disclosed enough information for investors to know about its IPO plan. LightJump Acquisition plans to trade its stock on the Nasdaq under the ticker symbol “LJAQU.” EarlyBirdCapital is the only book runner on the deal.
The SPAC will be led by CEO and Chairman Robert Bennett, CFO and Vice Chairman William Bunker, President Eric Ver Ploeg, and VP of Acquisitions Patrick Brandt. Currently, they also operate LightJump Capital, which is a newly-created SPAC investment firm.
LightJump Acquisition's IPO price
LightJump Acquisition filed confidentially on October 9, 2020. The company plans to offer 10 million units priced at $10 per unit. Each unit will consist of one share of common stock and a one-half redeemable warrant to purchase a share at $11.50. At the proposed price, the startup would command a market capitalization of about $126 million.
LightJump Acquisition’s target company
SPACs are required to identify a target and complete the acquisition within 18 to 24 months of going public. LightJump Acquisition was formed with the intention of merging it with a technology company. According to IPOScoop, LightJump Acquisition was formed “to initially focus on technology and technology enabled businesses that directly or indirectly offer specific technology solutions or broader technology software and services.” The fair market value of the target company should be nearly 80 percent of the SPAC's trust assets.