B Capital Joins SPAC Frenzy With $300 Million IPO

B Capital Technology Opportunities, a special purpose acquisition corporation (SPAC), or blank check company, birthed from B Capital Group, has filed paperwork for an initial public offering (IPO) with the goal of raising $300 million, Tech in Asia reported on Monday (Feb. 22).

The SPAC, which was incorporated in the Cayman Islands, was founded this year to target transformational technology startups. Leading the new firm are B Capital Group Co-founder and chairman Howard Morgan, former Bain Capital executive Raj Ganguly, former Eight Roads Ventures partner Kabir Narang, ex-Hillhouse Capital Managing Director Angela C. Huang and Nasdaq’s former Vice-Chairman Bruce Aust. Eduardo Saverin, co-founder and co-managing general partner of B Capital Group, will serve as a special advisor to B Capital Technology Opportunities.

The Manhattan-headquartered company is planning to offer 30 million units valued at $10 per share of common stock and one-third of a warrant, exercisable at $11.50. The proposed offering would value the blank check firm at $375 million.

The company’s goal is to focus on cross-border and other startups that use technology intended to disrupt big legacy sectors — consumer enablement, financial services, health and wellness, industrial and transportation — according to the filing with the Securities and Exchange Commission (SEC).

The SPAC is planning a Nasdaq listing under the symbol BCTAU. The sole underwriter is Credit Suisse.

Founded in 2015, B Capital Group manages $1.6 billion in capital and invests in startup and late-stage technology companies.

SPACs are so far tracking to be among the hottest new celebrity-driven investment trends. Alex Rodriguez, the former Yankees third baseman, formed the SPAC Slam Corp this month. It is planning to offer 50 million units, comprising shares and warrants, priced at $10 each. 

Direct listings and SPACs have changed the landscape of public offerings. U.S. firms last year broke the 2014 record of $279 billion raised, notching in excess of $435 billion. Only $100 billion of that tally came from IPOs.