Chamath Palihapitiya and Social Capital Hedosophia have produced no shortage of SPAC merger news today. In fact, three of his blank-check companies are racing higher. So what do you need to know now about IPOD, IPOE and IPOF stock?
To start, investors should know that Palihapitiya is one of the leaders of the recent special purpose acquisition company moment. He sees SPAC mergers as a way to bring businesses with huge growth potential to the public markets, bypassing the traditional IPO process. And most importantly, Palihapitiya has been very successful. He is behind the Virgin Galactic (NYSE:SPCE), Opendoor (NASDAQ:OPEN) and Clover Health (NASDAQ:CLOV) deals.
So what is all of the SPAC merger news about today? Well, in addition to his first three completed deals, Palihapitiya and his Social Capital team are behind three other SPACs. One of them, Social Capital Hedosophia Holdings V (NYSE:IPOE), announced its plans to bring SoFi public. IPOE stock shot up almost instantly because of the fintech potential. Essentially, SoFi represents the growing trend in finance toward startups and away from legacy banks. The company lets customers use a mobile app to do everything from refinance their student loans to invest.
As exciting as the IPOE stock news is, where does the rest of the buzz come from?
Well, the SPAC merger news today is as simple as the fact that Palihapitiya has once again alerted investors to the potential of his blank-check companies. Plus, as a few savvy investors have highlighted, the Opendoor and Clover Health deals were announced in quick succession. That means a deal for IPOD or IPOF stock could be around the corner.
For investors, that means now is the time to dive into those two SPACs and figure out what makes them special.
SPAC Merger News: IPOD and IPOF Stock
Along with IPOE stock, Social Capital Hedosophia Holdings IV (NYSE:IPOD) and Social Capital Hedosophia Holdings VI (NYSE:IPOF) are currently trading without acquisition targets. Each of the SPACs has a nearly identical executive team, with one unique member per business. Nirav Tolia, the former CEO and co-founder of Nextdoor is behind IPOD stock. Richard Costolo, the former Twitter (NYSE:TWTR) CEO, is the unique executive behind IPOF stock.
And beyond that, each SPAC is working with varying amounts of cash. IPOE, the company behind the SoFi SPAC merger, brought in $700 million during its IPO. IPOD brought in $400 million while IPOF brought in $1 billion.
So what comes next? It seems that as investors continue to cheer the IPOE stock news, they will also be paying close attention to IPOD and IPOF. No deals have been announced, but that has not stopped the speculation. According to one Seeking Alpha columnist, many investors are hoping that Rivian is a potential target of IPOF. That speculation is also likely behind the rally today, as Rivian is a fascinating electric vehicle maker with Amazon (NASDAQ:AMZN) backing.
Keep an eye on this SPAC merger news. IPOD and IPOF stock could be the next high-flying names.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.
