Gores Holdings IV
Gores Holdings IV (NASDAQ: GHIV) was a special purpose acquisition company sponsored by an affiliate of The Gores Group for the purpose of effecting a merger, acquisition, or similar business combination. Gores Holdings IV completed its initial public offering in January 2020, raising approximately USD 425 million in cash proceeds.
Key Highlights
- United Wholesale Mortgage, LLC ("UWM"), the nation's largest wholesale and purchase mortgage lender, and Gores Holdings IV, Inc. (GHIV), a special purpose acquisition company ("SPAC") sponsored by an affiliate of The Gores Group, LLC, announced the completion of their previously announced business combination with a valuation of approximately USD16 billion.
- UWM received approximately USD 925 million in gross proceeds from the Business Combination, which included USD 425 million in cash from Gores Holdings IV and USD 500 million in proceeds from the private placement completed in connection with the Business Combination, which included top-tier institutional investors.
- Upon completion of the transaction, including the private placement, the current owners of UWM would retain approximately 94% ownership of the combined company.
- Gores Holdings IV changed its name to UWM Holdings Corporation and commenced trading on the New York Stock Exchange (“NYSE”) under the new ticker symbol “UWMC” on January 22, 2021.
- The transaction was approved at a special meeting of the Gores Holdings IV stockholders on January 20, 2021.
Conclusion
The stock of GHIV got merged with United Wholesale Mortgage and started trading on NYSE with a new symbol “UWMC”. Therefore, the position on 'GHIV' is closed at USD 11.54 per share while 'GHIVU' traded at USD 12.39 (Stock + Warrant) as on the last trading day (Jan 21, 2021) as per the secondary sources.
* We reiterate ‘Avoid’ recommendation on ‘UWMC’ based on the report released on June 23, 2021 at the closing price of USD 9.07 of June 22, 2021.
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