IPOs

Michael Klein's fourth SPAC Churchill Capital Corp IV files for a $1 billion IPO

Churchill Capital Corp IV, the fourth blank check company founded by dealmaker and former Citi executive Michael Klein, filed on Tuesday with the SEC to raise up to $1.0 billion in an initial public offering.

The New York, NY-based company plans to raise $1.0 billion by offering 100 million units at $10. Each unit consists of one share of common stock and one-fifth of a warrant, exercisable at $11.50. At the proposed price, Churchill Capital Corp IV would command a market value of $1.3 billion.

The company is led by CEO and Chairman Michael Klein. Klein is the founder and Managing partner of strategic advisory firm M. Klein and Company, and currently serves as a director for Credit Suisse. Prior to that, he served various roles at Citi and Salomon Smith Barney from 1985 to 2008, most recently as Chairman and Co-CEO of Citi Markets and Banking. The company plans to target industries with compelling long-term growth prospects, opportunities to affect valuation improvements, attractive competitive dynamics, and consolidation opportunities. It plans to target businesses with competitive advantages, significant streams of recurring revenue, opportunity for operational improvement, attractive steady-state margins, high incremental margins, and attractive free cash flow characteristics.

Churchill Capital Corp IV comes on the heels of Klein's most recent SPAC, Churchill Capital Corp III (CCXXU; +15% from IPO), which IPO'd in February 2020 and recently announced an $11 billion merger agreement with healthcare management services provider MultiPlan. Churchill Capital Corp III raised $1 billion in the largest SPAC ever at the time; Bill Ackman's Pershing Square Tontine Holdings (PSTH.U) is set to beat that record, aiming to raise up to $4 billion.

Klein's other SPACs include Churchill Capital Corp II (CCX; +10%), which IPO'd in June 2019, and Churchill Capital Corp, which IPO'd in September 2018 and acquired Clarivate Analytics (CCC; +119%) in May 2019.

The New York, NY-based company was founded in 2020 and plans to list on the NYSE under the symbol CCIV.U. Citi is the sole bookrunner on the deal.

The article Michael Klein's fourth SPAC Churchill Capital Corp IV files for a $1 billion IPO originally appeared on IPO investment manager Renaissance Capital's web site renaissancecapital.com.

Investment Disclosure: The information and opinions expressed herein were prepared by Renaissance Capital's research analysts and do not constitute an offer to buy or sell any security. Renaissance Capital's Renaissance IPO ETF (symbol: IPO), Renaissance International ETF (symbol: IPOS), or separately managed institutional accounts may have investments in securities of companies mentioned.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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