Earlier this morning, its 5.0 million share IPO priced at $10, raising $50.0 million. There usually isn't an expected price range with blank check IPOs -- just a set price. And that was the case with DOTAU as well, pricing at $10 as expected. The lead underwriter on the deal was Early Bird Capital, and shares are set to open for trading on the Nasdaq later this morning.
As its name suggests, DOTAU will be focused on identifying target businesses for an initial combination in the technology industry, particularly in the U.S. At this point, its executives have not had any substantive discussions with any other party regarding a possible combination.
Its sponsor is Draper Oakwood Investments, led by Timothy Draper, who is well-known within the venture capital world. In 1985, he established Draper Associates, providing early-stage capital to entrepreneurs focused on up-and-coming technologies. Among the companies that Draper helped capitalize are Skype, Hotmail, Tesla, Baidu, Solar City, Athena Health, and Box.
While Mr. Draper will not actually be on the Board, DOTAU expects that he will assist the company in sourcing potential business combination targets. The management team will be led by Roderick Perry, who previously worked for 3i Group, one of the oldest private equity firms in the world. The CEO will be Aamer Sarfraz, who worked with Mr. Perry as part of the venture capital team at 3i Group.
In addition to focusing on technology companies within the U.S., DOTAU has identified other criteria that it intends to use while evaluating opportunities. These include: 1). target should be privately owned, 2). its backed by institutional venture capital investors, 3). has a proven and established technology, 4). verifiable customers and revenue, and 5). is seeking to grow internationally.
DOTAU has 12 months from the closing of this IPO to consummate an initial business combination. However, if it anticipates that it may not be able to consummate an initial business combination within 12 months, it may extend the period of time up to two times, each by an additional three months (for a total of up to 18 months to complete a business combination). If it is unable to consummate an initial business combination within such time period, it will redeem 100% of the outstanding public shares.