Dragoneer Growth Opportunities, a newly formed SPAC, raised $600 million in its IPO, offering 60 million units at $10. Each unit consists of one share of common stock and one-fifth of a warrant, exercisable at $11.50.
Dragoneer Investment Group formed Dragoneer Growth Opportunities as a special purpose acquisition company (SPAC). SPACs have been around for a long time. They are most commonly known as “blank check” companies. Dragoneer Growth was formed strictly to raise capital through its IPO.
On Aug. 14, Dragoneer began fundraising in the Bay Area's seventh ‘blank check' IPO of 2020. The offering is the third SPAC company offering in three days that involves these same investors. And 2020 has been record-breaking with 70 SPACs nationwide so far this year. The previous record was 59 total for the year.
Marc Stad and Pat Robertson will lead the new company, which describes itself as a newly organized blank check company formed “for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses or entities.”
The company may raise an aggregate of $175 million at the closing of the acquisition to forward purchase agreements with Dragoneer Investment Group and Willett Advisors.
In a statement the company said, “We intend to pursue opportunities with private, high-quality growth companies. We will use our experience in sourcing transactions and portfolio companies due to diligence to seek to identify and negotiate a combination with an exceptional business.”
The SPAC will focus broadly on technology including software, media, internet, consumer/retail, financial services/fintech, and healthcare IT.
They added, “Our expectation is that our ultimate target will be in one of those sectors, although we may consummate a transaction with a business in a different industry.”