Ribbit Leap, a special purpose acquisitions company (SPAC), formed by Ribbit Capital – an investor in fintech startups – filed a prospectus with the Securities and Exchange Commission (SEC) on 25 August 2020.
Ribbit Leap currently has no operating business. As an SPAC, its intention is to acquire or merge with a company using the proceeds of the initial public offering (IPO). Ribbit Leap aims to raise $350 million by offering 35 million units at a price of $10 each. The firm intends to apply to have the units listed on the New York Stock Exchange, with JP Morgan listed as the sole book-running manager.
The SPAC will seek, but is not limited to, pursue fintech companies similar to those in Ribbit Capital’s existing portfolio. Ribbit Capital’s investments include Coinbase, Chainalysis, Revolut, Robinhood, Xapo, Figure Technologies and CRB Group. The company stated in the prospectus that:
“We have not selected an initial business combination target, nor have we or anyone else acting on our behalf engaged directly or indirectly in substantive discussions with any businesses about an initial business combination.”
It appears that the fintech industry will stand to benefit from the IPO. It is, however, unclear if Ribbit Leap will focus on crypto related acquisitions, but judging from Ribbit Capital’s existing portfolio, there is a strong possibility of a crypto or blockchain company acquisition or merger.