Mark Pincus and Hoffman led SPAC falls below IPO price for the first time
Reinvent Technology Partners Z, a blank-check company established by investors including Mark Pincus and Reid Hoffman, slumped below its initial public offering price weeks after announcing a deal to merge with insurance startup Hippo Enterprises Inc.
Shares of the special purpose acquisition company fell as low as $9.96 Wednesday afternoon in New York trading. That’s lower than the SPAC’s $10-a-share IPO in November.
Reinvent Technology Partners Z agreed earlier in March to merge with Hippo, a home-insurance startup, and take the company public in a deal that valued the combined entity at $5 billion. The deal includes a lockup on founder shares for as long as two years.
Other SPACs have also dropped below their IPO prices at times. Jaws Spitfire Acquisition Corp., which priced an IPO in November for $10 a share, dipped below that level in intraday trading on March 5 before closing slightly higher, at $10.25, the same day.Read more