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D8 to focus on consumer sector
Posted on Monday, 29 June 2020 10:46
D8 Holdings is expecting to raise USD 250.00 million in its initial public offering (IPO) on the New York Stock Exchange (NYSE), though this could rise to USD 287.50 million if the overallotment option is exercised.

The Cayman Islands-incorporated special purpose acquisition company (SPAC) is selling 25.00 million units at USD 10.00 apiece and has provided UBS Investment Bank, as sole bookrunning manager, with a 3.75 million scrip green shoe.

Its sponsor has committed to buying 7.00 million warrants worth USD 7.00 million in a concurrent private placement.

D8’s objectives are “to bring global and regional consumer brands to the next level and to create significant value for our shareholders”, according to its prospectus.

The strategy is to identify and complete an initial business combination with a company in the consumer sector that is ready for a transformative reset and a new growth trajectory.

It noted the industry has a broad spectrum of opportunities that include, but are not limited to, apparel and footwear, sportswear, accessories, food and beverage, beauty, home care, home furnishings, household goods, and education.

D8 added there are a substantial number of openings in the consumer sector, which have been further highlighted by the “economic and market dislocation resulting from the COVID-19 pandemic”.

The SPAC is helmed by David Chu, who founded Nautica and helped this business expand into a global lifestyle with a distribution and licence portfolio spanning 100 countries.

D8 is the latest in a stream of global SPACs heading to the equity market this year.

According to Zephyr, the M&A database published by Bureau van Dijk, 45 such vehicles have announced IPOs in 2020 to date, compared to 35 listings over the same timeframe in 2019.

D8’s will rank joint 14th alongside the planned listing of Fusion Acquisition on the NYSE.

© Zephus Ltd