Led by Pompliano, the SPAC focused on Crypto Assets rose 7% after listing on Nasdaq.
Source: Cointelegraph Original text: “SPAC focused on cryptocurrency led by Pompliano rises 7% after listing on NASDAQ”
Cryptocurrency influencer Anthony Pompliano’s fintech-focused blank check company ProCap Acquisition Corp (PCAPU) rose 7% on its Nasdaq debut, after its initial public offering (IPO) size was raised at the last minute.
ProCap increased its IPO size from 200 million to 220 million USD on May 20, the day before its public listing, issuing 22 million shares at a price of 10 USD per share.
According to Yahoo Finance data, ProCap’s stock price rose by 7% to close at $10.70 on the trading day of May 21, and further increased slightly by 1.6% in after-hours trading to $10.87.
The company provided underwriters with a 45-day option to purchase up to an additional 3.3 million shares at the IPO price to meet extra demand.
ProCap stated in its regulatory filing on April 30 that the company will operate as a special purpose acquisition company (SPAC) seeking to invest in and potentially list companies in the fields of financial services, digital assets, asset management, or healthcare.
Pompliano is one of the biggest supporters in the cryptocurrency industry, hosting a podcast focused on Bitcoin and finance, and leading the investment firm Professional Capital Management.
Pompliano stated in an interview with CNBC on May 21 that he had been eager to take a company public for the past five years, but it was not until six months ago that he saw enough demand in the private market. He mentioned that recent changes in the regulatory environment in the United States have affected the financial markets.
He hinted that his blank check company would invest in crypto-native and traditional financial businesses, as he expects these two areas to converge in the coming years.
“The reason for using the term ‘financial services’ is primarily because the new digital world and the old traditional world are merging.”
In an interview with CNBC, Pompliano was asked why he chose to establish ProCap as a SPAC, given that SPACs have historically had a higher failure rate due to sponsor conflicts, dilution, speculative valuations, and regulatory scrutiny.
Pompliano stated that SPACs have a bad reputation because companies often see them as public venture capital, targeting high-growth but heavily loss-making and overvalued companies.
Pompliano pointed out that he has invested “millions of dollars” of personal funds.
“We have real stakeholders,” Pompliano said, adding: “I am taking on a tremendous reputational risk.”
Brent Saunders, the CEO of health product company Bausch + Lomb, has also joined the team as a strategic advisor. Saunders has completed over $300 billion in mergers and acquisitions over the past 17 years.
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