Fintech company GloriFi is planning a U.S. listing by merging with blank check firm DHC Acquisition Corp in a $1.7 billion deal.
GloriFi, whose equity holders will roll forward 100% of their existing shares, will receive nearly $279 million in cash proceeds, the companies said on Monday. The deal is expected to close in the first quarter of 2023.
Special purpose acquisition company DHC Acquisition Corp priced its initial public offering at $300 million in March last year at a time when SPAC deals were Wall Street’s hottest investment trends.
Since then, the SPAC dealmaking frenzy has fizzled out as tightening scrutiny from the U.S. Securities and Exchange Commission saturated demand and forced many SPAC-listed companies to trade below their offering price.
GloriFi is among a handful of companies opting to push ahead with their listing plans at a time when valuations in the tech sector have taken a beating due to a recent rout.
However, investors like SoftBank and Tiger Global continue to bet on a recovery in valuations later this year.
For instance, California-based fintech Acorns raised capital from investors led by buyout firm TPG valued it at $2 billion, barely two months after it scrapped plans to go public by merging with blank check Pioneer Merger Corp in a $2.2 billion deal.
A SPAC typically sells shares at $10 apiece, puts the cash in a trust account, and then searches for a company to buy. Its shareholders can choose to redeem their shares in return for cash.
The combined company, which will be renamed GloriFi upon the closing of the deal, expects to list on the Nasdaq under the symbol “GLRI”.
