Fintech firm GloriFi plans U.S. listing with $1.7 bln SPAC deal (updated)

Brand Engagement Network

25/07/2022 23:29

(Adds company background)
    July 25 (Reuters) - Fintech company GloriFi is planning a
U.S. listing by merging with blank check firm DHC Acquisition
Corp  DHCA.O  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. https://bwnews.pr/3Bbtbtg
    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 that valued it at $2
billion, barely two months after it scrapped plans to go public
by merging with blank check Pioneer Merger Corp  PACX.O  in a
$2.2 billion deal.   urn:newsml:reuters.com:*:nL3N2VC33E
    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". 


 (Reporting by Mehnaz Yasmin in Bengaluru; Editing by Anil
D'Silva)
 ((Mehnaz.Yasmin@thomsonreuters.com;))