#IPO / New blank-check company from Bancorp founder lays groundwork for a fintech deal

A new $750 million special purpose acquisition company is listing on the Nasdaq Wednesday with the eventual goal of buying a global fintech company.

The shell company is being run by Bancorp founder and former CEO, Betsy Cohen, and general partner at BBVA, Ryan Gilbert.

So-called “blank check” companies are formed for the sole purpose of buying another company, and taking it public typically within two years. SPAC offerings have been on a hot streak this year as the pandemic and wild volatility weighed on the traditional IPO market. So far this year, 51 of these offerings have raised a record $21.5 billion, up 145% from the same period a year ago, according to Goldman Sachs.

Billionaire investor Bill Ackman’s Pershing Square Tontine Holdings raised $4 billion and became the largest SPAC in history. Nikola, DraftKings and Virgin Galactic are among the other high-profile companies to go public through a SPAC.