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Goldman-backed blank check company GS Acquisition files for IPO

Goldman Sachs Group Inc.-backed blank check company GS Acquisition Holdings Corp is looking to raise up to $600 million in an initial public offering.

GS Acquisition has been formed to pursue mergers, acquisitions and investments in the diversified industrial sector. The company's sponsors are Goldman Sachs affiliate GS DC Sponsor I LLC and David Cote, GS Acquisition's CEO, president, secretary and chairman. Cote held leadership roles at General Electric Co. and TRW Inc.

GS Acquisition seeks to complete its initial business combination with a company in the diversified industrial sector, which includes aerospace and defense, industrial services, chemicals, home and building products, building and construction, capital goods, and packaging and supply chain. However, it may not limit its prospective target businesses to the industrial sector.

The company is offering 60 million units in the IPO, each consisting of one share of the company's class A common stock and one-third of one redeemable warrant. The company has also granted the underwriters a 45-day option to purchase up to an additional 9 million units, to cover overallotments. The units will be listed on the NYSE.

The Goldman affiliate has committed to purchase 9,333,333 warrants for about $14 million, or $15.8 million if the underwriters' option to purchase additional units is exercised in full in a private placement that will close simultaneously with the closing of the IPO. Warrant holders can purchase one class A common share for $11.50, subject to adjustments. The sponsor already holds 17,250,000 shares of class B common stock, up to 2,250,000 of which are subject to forfeiture depending on the extent to which the underwriters' option to purchase additional units is exercised. The class B common shares will automatically convert into class A common shares at the time of the company's initial business combination, or earlier at the option of the holder, on a one-for-one basis, subject to adjustment.

Goldman Sachs & Co. LLC is acting as the book-running manager for the offering. Deutsche Bank Securities is acting as the co-manager.