People are always inquisitive to know what all IPOs are hitting the market shortly. Now in covid-19 market, there are many companies which are planning to go public to rake in more capital for the operational growth of the businesses. Sports Entertainment Acquisition Corporation; NYSE: SEAH.U at https://www.webull.com/quote/nyse-seah.u, is one such black check company which is currently planning to go ahead with their IPO in 2020.
About blank check company
Blank Check Company is an acquisition or merger firm, which does not have any certain business plan. Their business plan is based and designed parallel to the merger or acquisition of the other companies. These companies come under the stricter regulations by SEC like disclosing the finer details, putting the capital from investors in escrow etc. These stocks are called as penny stocks and they come under the speculative stocks nature according to the SEC.
These blank check companies will go public only if they are merging with any private company and the private company wants to go public to raise capital.
Blank check IPO
Blank check companies play an instrumental role in taking the merged private company public. They will offer shares to public raise capital for the firm. In uncertain times, when the market volatility is very high, blank check method of going public is very useful for the companies.
In this, the private companies will merge with public-traded blank check company. This will bring the private company onboard and the name of the blank check company will be turned to the merged companies name and will also have the merged company’s stocker tier.
Investors should be very careful before investing in blank check IPOs. In case they are well known and less risky then only they should be invested in. also, in case a blank check company is bringing a private company public, then look for how the former performed in the market before. Usually while investing in these types of speculative stocks, the investors should take into account the managers capability and not the stocks.
Sports Entertainment Acquisition Corporation IPO
Sports Entertainment Acquisition Corporation NYSE: SEAH.U is a blank check company which is started by the NHL and NFL executives. They are planning to the public with IPO, as they would want to target the entertainment and sports sector with verticals like payment processing, media, ticketing, bonus programs etc.
Recently they have announced an IPO of $350 million. They will offer one unit at ten dollars and in total there are 35 million units to go for. Each unit will have $11.5 exercisable 1/3rd warrant and one common stock of the company.
Planning to invest in blank check company IPOs? Well, it is always better to do some thorough research about the company, their record, their financial details and the executives. You can check more stocks like NYSE: VIAO at https://www.webull.com/quote/nyse-viao before stock trading.
Disclaimer: The analysis information is for reference only and does not constitute an investment recommendation.