What happened
Shares of Social Capital Hedosophia Holdings III (IPOC) were rising on Thursday. As of 12:30 p.m. EST, the SPAC led by notable venture capital investor Chamath Palihapitiya had risen by more than 9% after soaring by over 10% earlier in the day.
So what
Social Capital Hedosophia Holdings III is a special purpose acquisition company, or SPAC. It announced in late 2020 that it had agreed to acquire and take public Clover Health, an innovative and technology-focused Medicare Advantage insurance provider.
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On Thursday, both companies announced that their business combination had been approved by shareholders of the so-called "blank check" company, and the deal had been closed. The deal initially valued Clover Health at $3.7 billion, but the actual market capitalization of the company is going to be significantly higher since shares are trading at a premium of approximately 60% to the SPAC's net asset value.
Now what
The combined company will be renamed Clover Health Investments, and will begin trading under its new symbol, CLOV, on the Nasdaq beginning on Friday, Jan. 8. The SPAC's warrants will trade under the new ticker symbol CLOVW.
Now that this business combination has been finalized, there are only three more of Palihapitiya's SPACs left. Social Capital Hedosophia Holdings IV (IPOD) and Social Capital Hedosophia Holdings VI (IPOF) raised $400 million and $1 billion, respectively, in 2020 IPOs and are still looking for acquisition targets. Social Capital Hedosophia Holdings V (IPOE) raised $700 million and recently announced an agreement to take fintech lender SoFi public.
