Former Trump administration advisor, Sigal Mandelker, teams up with top profile investors in a $350 million public offering in Ribbit Capital, a SPAC firm that invests in fintech firms, including blockchain technology projects. The IPO will raise $350 million for a “blank check” company that invests in the unspecified business at the moment.
Ribbit LEAP, short for Ribbit Capital Long-Term Equity Acquisition Pool, is a unique purpose acquisition company (SPAC) looking to join the increasingly popular blank check model that allows the company to effect a merger, acquire assets, purchase stocks, or reorganize a similar business in a prospectus filed with the U.S. Securities Exchange Commission (SEC).
According to the prospectus, the SPAC has yet to define its planned businesses despite raising the multi-million IPO. Blank checks structures allow companies a vast ground for investment and business operations without any interference from shareholders, who are not allowed to vote on any decisions. The S-1 form reads:
“Our shareholders may not be afforded an opportunity to vote on our proposed initial business combination, which means we may complete our initial business combination even though a majority of our shareholders do not support such a combination.”
Ribbit LEAP is one of the first investors in the U.S’ largest crypto exchange, Coinbase, and over 75 other fintech startups, including Robinhood Markets, CreditKarma, MercadoLibre, Inc., Sea Limited, Next Insurance, and Zillow. Other top crypto companies in the Ribbit LEAP portfolio include U.K based Revolut, Xapo, and Chainalysis.
The prospectus further states that the company offered $402.5 million in class A shares at $10 per share to begin, but fees rose to approximately $52 million, bringing the total IPO to raise close to $350 million. Out of the total available shares, the SPAC has pledged a minimum of $100 million in a forward purchase commitment.
According to Reuters, the company is aiming to list the SPAC on the New York Stock Exchange in the coming days with JP Morgan, the only book-manager running the securities.