Biotech ProKidney LP will merge with a blank-check firm backed by veteran dealmaker Chamath Palihapitiya to go public in a deal valuing the combined entity at $2.64bn, the companies said on Tuesday.
The merger with Social Capital Suvretta Holdings Corp III will hand ProKidney up to $825 million in gross proceeds to advance the development of its treatment for chronic kidney diseases.
The proceeds include the $250 million the blank-check firm raised through an initial public offering (IPO) in July and a $575 million private investment in public equity, or PIPE.
Get the week’s top news delivered directly to your inbox – Sign up for our newsletter
Investors in the PIPE include Palihapitiya’s Social Capital, Suvretta Capital’s healthcare-focused fund Averill and ProKidney’s existing shareholders.
ProKidney says its technology has the potential to treat chronic kidney diseases by using the patient’s own cells to restore organ function.
Often hailed as a “SPAC King”, Palihapitiya has sponsored some of the most high-profile blank-check deals including those for fintech SoFi Technologies Inc and home-selling platform Opendoor Technologies.
Source: Reuters
Can’t stop reading? Read more
Wealthy Families Fuel $20bn Private Equity Buyout Wave
Ultra-rich individuals and families worth more than $150bn are helping drive a resurgence in...
Zuber Issa exits Asda Ending Partnership, Quits as EG Group Co-CEO
Zuber Issa has exited Asda after selling his 22.5% stake in the supermarket to existing owners...
India Inc Sees Resilient Private Equity Investments at USD$6.7bn Across Key Sectors
India Inc saw resilient private equity (PE) investments amid elections as the month of May...