UPDATE 1-Palihapitiya-backed blank-check firms raise $2.1 bln through IPOs

(Adds background on SPACs)

Oct 8 (Reuters) – Three blank-check companies backed by venture investor Chamath Palihapitiya have raised a total of $2.1 billion through initial public offerings, the companies said in separate statements on Thursday.

The companies, Holdings IV, V and VI, have raised up to $400 million, $700 million and $1 billion, respectively, by selling units of $10 each – made up of stocks and warrants – on the New York Stock Exchange.

is the sole book-runner on the offering of Palihapitiya’s companies.

A blank-check company backed by Palihapitiya merged with Virgin Galactic Holdings Inc in October last year, while his Holdings Corp II is set to merge with backed Opendoor Labs Inc.

A blank-check company or a special purpose acquisition company (SPAC) is a shell vehicle that uses capital raised through an initial public offering to buy a private company, usually within two years. The deal then takes the private company public.

Other high-profile investors like Bill Ackman, Michael Klein and Chamath Palihapitiya have raised billions through their SPACs this year. Ackman’s SPAC Pershing Tontine Holdings Ltd raised $4 billion in its in July, making it the largest SPAC IPO.

Source: Reuters – UPDATE 1-Palihapitiya-backed blank-check firms raise $2.1 bln through IPOs