Forbes Global Media Holdings Inc announced on Thursday the final decision upon its upcoming IPO. The publisher of Forbes magazine has decided to merge with a blank-check acquisition company to go public.
Forbes is sealing a deal with Magnum Opus Acquisition Ltd to commence with its IPO. According to Reuters‘ report, the deal values the combined entity at $630 million.
Noted from Reuters, Magnum Opus is expected to raise $600 million of proceeds for Forbes. The deal further reads that it includes a $400 million of private investment in public equity (PIPE).
Magnum Opus is a SPAC (special purpose acquisition company). These kinds of companies act as shells for other private companies looking to go public.
During an initial public offering, these SPACs raise funds, representing a specific private company they have a deal with. Both companies will later merge, making the private company becomes public.
Once the deal closes, Forbes will mark its debut on the New York Stock Exchange under”FRBS”.
The news circulating Forbes’ IPO has been circulating since somewhere around May. At that time, Forbes was mentioned along with other big-name companies as companies planning to go public through mergers with SPACs.