TOKYO -- SoftBank Group's investment unit has announced plans to establish two new special purpose acquisition companies and raise up to $630 million.
In the U.S., SPACs are being increasingly listed for the purpose of acquiring other companies. With high demand from investors, SoftBank will raise additional capital by establishing the two SPACs.
The operating company of SoftBank's Vision Fund will be the founding entity and will target artificial intelligence related companies. SoftBank's first SPAC was listed in the U.S. on Jan. 8, raising $525 million.
A SPAC is a special purpose company that does not have a business at the time of listing. The operator searches for an acquisition target and turns the SPAC into a business company. The acquisition target will then be listed by merging with a SPAC.
By merging with a SPAC, startups and other entities have the advantage of shortening the preparation period for a conventional stock market listing.