| | | Gores Holding IV, Inc. (stock symbol: GHIV), a SPAC that raised $425 million when it went public in January 2000, has announced that it is going to merge with United Wholesale Mortgage, the largest wholesale mortgage originator in the U.S.
The deal is valued at $16.1 billion, the largest SPAC deal to date.
GHIV, which closed at $10.81 yesterday, is trading at $11.49 this morning, up $.68.
Gores Holdings stock soars after SPAC's deal to take United Wholesale Mortgage public
Published: Sept. 23, 2020 at 6:45 a.m. ET
By Toe mi Kilgore
MarkWatch
Shares of Gores Holdings IV Inc. GHIV, -1.18% shot up 16% in premarket trading Wednesday, after the special purpose acquisition company (SPAC), also known as a blank-check company, announced it will take United Wholesale Mortgage public in deal that values the mortgage lender at $16.1 billion. The deal includes $425 million of cash from Gores and a $500 million private placement, which is anchored by "top tier" institutional investors. After the deal, the company will operate under the United Wholesale Mortgage (UWM) name, and the stock will be listed on the Nasdaq under the ticker symbol "UWMC." Michigan-based United Wholesale said it is the largest wholesale mortgage originator in the U.S., and the companies boast that UWM's valuation makes the deal the largest transaction by a SPAC to date. Gores's stock, which went public in March, has gained 7.9% over the past three months through Tuesday, while the Renaissance IPO ETF IPO, +1.90% has run up 23.1% and the S&P 500 SPX, +1.05% has gained 5.9%.
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