ION-backed SPAC aims to raise $500 mln in U.S. IPO

Ark Solutions

01/12/2020 18:47

MILAN, Dec 1 (Reuters) - Financial software group ION is
sponsoring a $500 million listing of a special purpose
acquisition vehicle to invest in financial technology and
services, filings with the U.S. securities regulator showed.
    The move adds to a wave of recent listings of so-called
SPACs or special purpose acquisition companies, shell vehicles
that raise money in an initial public offering (IPO) to buy and
then merge with another company, typically within two years.
    The SPAC, ScION Tech Growth I is aiming to sell 50 million
units at $10 each, it said in the Securities and Exchange
Commission filing. It said it planned to use the proceeds to
invest in companies that offer "specific technology solutions,
broader technology software and services in the financial
services sector".
    The target company will have an enterprise value between $3
billion and $10 billion, a source close to ION said on Tuesday. 
    Dublin-based ION group, founded and led by Italian
businessman Andrea Pignataro, is specialised in software, data
and analytics for financial institutions.
    ION committed to a forward purchase agreement to buy an
additional stake in the SPAC up to $300 million at the closing
of the acquisition.   
    SPACs, which offer a way onto the market for privately held
companies without the expense of an IPO, have surged in
popularity, with recent deals including electric vehicle startup
Nikola Corp and electric carmaker Fisker Inc.
    However several have cut the size of their offerings in a
possible sign the market may be cooling.  urn:newsml:reuters.com:*:nL4N2HI3ED 
    UBS and Citigroup are acting as joint book-running managers
for the proposed offering.

 (Reporting by Elisa Anzolin; editing by Emelia
Sithole-Matarise)
 ((elisa.anzolin@thomsonreuters.com; 0039 0266129692;))