TPG Pace Solutions, a blank check company formed by TPG targeting mature businesses underperforming their potential, filed on Monday with the SEC for an initial public offering.
The SPAC plans to raise $250 million by offering 25 million shares at a price of $10. There it would command a market value of $285 million. Unlike most SPACs, this one will not include warrants in the offering. Pre-IPO shareholders will initially have a reduced promote - about 12% instead of the standard 20% - but the sponsor's stake may increase to 25% upon certain share price hurdles ($12.50, $15.00, $17.50).
The company is led by Chairman Karl Peterson, a Senior Partner at TPG Capital who also serves as Chairman of four other SPACs from TPG Pace, sits on the board of two post-merger targets, and previously co-founded Hotwire.com in 2000.
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The SPAC may target any industry, but plans to focus on those that fit several criteria: companies underperforming their potential in otherwise stable/improving industries; at an inflection point requiring additional management expertise; with a unique product or service addressing a large consumer or business market; mature and at scale; among other criteria.
The Fort Worth, TX-based company was founded in 2021 and plans to list on the NYSE under the symbol TPGS. Deutsche Bank, J.P. Morgan and Goldman Sachs are the joint bookrunners on the deal.
