Three blank checks companies backed by the venture investor Chamath Palihapitiya said on Wednesday that they will give retail investors an opportunity to buy shares in their initial public offerings via Social Finance Inc's online brokerage platform.
SoFi, a loan service startup, said in March that an individual investor can buy into IPOs, an investment opportunity traditionally reserved for large Wall Street investors.
Robinhood Markets Inc. also launched such a platform last month, with FIGS Inc becoming the first company to offer shares to retail investors.
In March, Reuters was to review plans for the new product of Robinhood called IPO Access.
The SoFi Securities acquired companies — launched earlier this month, III, III & IV - said they anticipate up to 5% of Class A ordinary shares in the offer are available to retail investors through Social Capital Suvretta Holdings Corp. as an underwriter to local investors.
A private-check company, also known as SPAC, uses capital raised through an IPO to buy a blank company, usually within two years of purchase. The deal then takes the public company private.
The four SPACs are looking to acquire a total of $800 million through initial public offerings with a focus on acquiring biotechnology companies.
Palihapitiya has been a prolific backer of blank-check companies and merged them with a range of companies, from space tourism business Opendoor Technologies Inc. to the home-selling platform Virgin Galactic Holdings Inc.