- Churchill Capital is preparing for its fourth $1 billion special-purpose acquisition company (SPAC) IPO
Churchill Capital is preparing for its fourth $1 billion special-purpose acquisition company (SPAC) IPO. A SPAC is essentially a shell company that raises funds by going public and buying private companies. This simplifies the process for the private company to go public. Some of the companies that recently went public through a SPAC include Virgin Galactic, DraftKings, and Nikola Motors.
Churchill Capital’s fourth SPAC is going to be called Churchill Capital IV and it is going to trade under the ticker CCIV after going public. And this SPAC is expected to raise $1 billion.
The first SPAC Churchill launched raised $690 million and the company acquired analytics company Clarivate PLC in May 2019. The Clarivate PLC stock price year-to-date is up about 59.19%.
Churchill’s second SPAC Churchill Capital Corp. II had raised $600 million. However, this SPAC is still looking for a company to buy. A couple of weeks ago, Bloomberg reported that Topgolf International was in talks to go public through Churchill Capital Corp. II.
The third Churchill SPA (called Churchill Capital Corp. III) announced a deal recently to buy analytics company MultiPlan for $11 billion. That is the largest SPAC acquisition ever announced.
After Churchill’s fourth SPAC goes public, it will have 24 months to find a company to buy. If an acquisition is not completed by then, Churchill will give investors back their money and interest minus professional fees.
Michael Klein is the founder of all the Churchill Capital SPACs. Klein currently runs an investment bank called M. Klein and he previously served as the head of investment banking at Citibank.