The Chairman of Virgin Galactic Holdings Inc, Chamath Palihapitiya has raised $720 million on for a new company. He was able to achieve 20% more than the original target after the coronavirus crisis disrupted the event which was scheduled for March. The IPO was one of a kind, as only two others have happened so far in April according to IPO Boutique. Whereby they were biotechnology firms, a sector that is thriving with the ongoing coronavirus.
The capital is raised for Social Capital Hedosophia Holdings Corp III IPOC_u.N. It is a special purpose acquisition company (SPAC), which will utilize the $720 million for buying a tech company outside the United States.
In the beginning, Palihapitiya was anticipating to raise around $600 million but due to the increased demand from investors, he was compelled to increase and accommodate them.
Special purpose acquisition companies are more resilient to market volatility than most traditional stock markets. Investors only deposit their money while the management team constantly searches for a profitable investment
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