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Chamath Palihapitiya's 4 New SPACs Are Getting Ready to Launch

By Matthew Frankel, CFP® – Updated Jun 22, 2021 at 3:42PM

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Here's what investors need to know about the prominent SPAC investor's new blank-check companies.

Chamath Palihapitiya has certainly made a name for himself in the world of special purpose acquisition companies, having facilitated the public debuts of Virgin Galactic Holdings, Opendoor Technologies, Clover Health, and SoFi Technologies. Now, Palihapitiya is getting ready to launch four new blank-check companies, all with specific subsectors of healthcare to target. In this Fool Live video clip, recorded on June 7, Fool contributor Matt Frankel and Industry Focus host Jason Moser discuss what investors need to know about the four upcoming SPACs. 

Matt Frankel: He's launching four different SPACs. These are not part of the IPO series, you know how like his SPACs are IPOA, IPOE, IPO --

Jason Moser: What are these going to be?

Frankel: These are launched with a different partner, all those SPACs so far were launched between Social Capital, which is Chamath's firm, and Hedosophia Holdings, that's who they were partners with. You'd have like Social Capital Hedosophia Holdings V, which was IPOE, which just took SoFi public. This one, they're partnering with a healthcare financial firm called Suvretta Capital Management.

He's using a really cute ticker symbol model called DNA. The first one would be DNAA, then you have DNAB, then you have DNAC. Social Capital Suvretta Holdings Corp. I will be DNAA, so each one is raising $200 million in its IPO. Unlike his previous SPACs and most others SPACs, there's no warrants involved. If you remember the SEC recently made new guidance for warrants that's really why pretty much every SPAC IPO has been delayed over the past few months, so no warrants. They're each selling 20 million shares for $20 a piece and I'll tell you what the four industries are. It's Social Capital Suvretta Holdings Corp. I -- I'm just going to say DNAA -- is seeking acquisitions in the neurology industry. DNAB is aiming in the oncology field, DNAC is aiming in the organ space as it calls, which is intrinsic diseases of the heart, kidney or endocrine system, and finally, DNAD which is the fourth one is looking at the immunology sector. He's launching four simultaneously, but they all have very clear different targets. These are not part of the IPO series, which presumably he still plans on going forward with some more of those, but these are with a different partner firm than the first few and are all in the genomics and biotech space. If you are a Chamath believer, you might want to check those out.

Moser: Yeah, it's cool. It's very cool.

Frankel: They've not launched yet, by the way, they recently filed paperwork for these.

Jason Moser has no position in any of the stocks mentioned. Matthew Frankel, CFP owns shares of SoFi Technologies, Inc. The Motley Fool owns shares of and recommends Clover Health Investments, Opendoor Technologies Inc., and Virgin Galactic Holdings Inc. The Motley Fool recommends SoFi Technologies, Inc. The Motley Fool has a disclosure policy.

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Stocks Mentioned

Virgin Galactic Holdings, Inc. Stock Quote
Virgin Galactic Holdings, Inc.
SPCE
$4.71 (-3.29%) $0.16
Opendoor Technologies Inc. Stock Quote
Opendoor Technologies Inc.
OPEN
$3.11 (-0.95%) $0.03
Clover Health Investments, Corp. Stock Quote
Clover Health Investments, Corp.
CLOV
$1.70 (-5.56%) $0.10
SoFi Technologies, Inc. Stock Quote
SoFi Technologies, Inc.
SOFI
$4.88 (0.83%) $0.04

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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