Crypto and Fintech Investor Ribbit Capital Files to Raise $350M for ‘Blank Check’ IPO
Crypto and Fintech Investor Ribbit Capital Files to Raise $350M for ‘Blank Check’ IPO
Ribbit Capital, a major investor in fintech startups including cryptocurrency and blockchain ventures, is seeking to raise $350 million for a “blank check” company that would make acquisitions.
- The special-purpose acquisition company (SPAC), Ribbit LEAP, Ltd., filed a prospectus with the Securities and Exchange Commission late Tuesday.
- As a SPAC, Ribbit Leap has no operating business – it was created to find and buy one. “We have not selected any business combination partner and we have not … initiated any substantive discussions with” any candidates yet.
- Unlike traditional publicly traded companies, where major acquisitions are subject to shareholder approval, Ribbit Leap is asking for wide latitude to make purchases (hence the term “blank check”). “Our shareholders may not be afforded an opportunity to vote on our proposed initial business combination, which means we may complete our initial business combination even though a majority of our shareholders do not support such a combination,” warns the SPAC’s risk factors section.
- JPMorgan Chase is the sole bookrunner for the initial public offering (IPO) of stock.
- The underwriter has the option to issue as much as 15% more shares than planned, which would bring total proceeds to $402.5 million.
- The prospectus mentions cryptocurrency only twice in passing, in passages that describe Ribbit Capital’s range of investments, which also include companies in mainstream financial services and technology sectors.
- Ribbit Capital is a founding member of the Libra Association, the consortium set up last year by Facebook to develop a global digital currency (which later curtailed its ambitions to mainly issuing stablecoins tied to fiat).
- In crypto, the investment firm led a seed round for Bobby Lee’s Ballet wallet startup in 2019. It has also invested in Coinbase, Revolut, Robinhood, Xapo and Chainalysis.
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