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ESG Investing: 10 Things to know About a Potential Seven Oaks IPO

Christmas is coming and so is another special purpose acquisition company. This time, the blank-check firm Seven Oaks Acquisition wants to focus on environmental, social and governance (ESG) investing. That alone should have investors excited. So with ESG investing gaining popularity, what do you need to know about the Seven Oaks IPO now?

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To start, the basic story is that yesterday, Seven Oaks Acquisition submitted its Form S-1 with the U.S. Securities and Exchange Commission. As investors wait for the IPO, it is important to know that the SPAC has not identified a business target. However, its ESG focus will likely draw attention.

With that in mind, here are 10 other things to know about the Seven Oaks IPO:

  • Seven Oaks Acquisition plans to initially trade on the Nasdaq Exchange under the symbol SVOKU.
  • The blank-check company also plans to offer 20 million units at $10 each. This means the Seven Oaks IPO should raise $200 million.
  • Each of these units will contain one share of common stock and half of a warrant.
  • These warrants allow holders to purchase common stock at $11.50 per share.
  • After the initial Seven Oaks IPO, the company plans to trade its common stock under the symbol SVOK and its warrants under the symbol SVOKW.
  • CEO and Chairman Gary Matthews leads Seven Oak Acquisition. Previously, Matthews was CEO at IES Holdings (NASDAQ:IESC).
  • Perhaps the most interesting aspect of the Seven Oaks IPO is the proposed business focus for the later SPAC merger.
  • In the S-1 filing, Seven Oaks details how it would like to acquire a company that aligns with ESG investing principles.
  • On that note, the company will also gift 100,000 founder shares to a charitable organization.
  • Additionally, Seven Oaks will sign the United Nations’ Principles for Responsible Investment prior to the IPO.

ESG Investing and the Seven Oaks IPO

Broadly, this has been the year of the SPAC IPO. Investors have rushed into these new offerings, particularly in the wake of exciting merger announcements. However, beyond its structure as a blank-check company, there is reason to anticipate the Seven Oaks IPO.

Just as the firm outlines in its prospectus, ESG investing is greatly rising in visibility and popularity. Businesses, consumers and investors are all seeking out ESG focuses when making choices. As this continues, Seven Oaks thinks that the most successful companies will be the ones committed to making positive social change. This thinking has driven many eco-friendly investments this year, as more institutional investors have jumped on board. In fact, just this week, Blackrock (NYSE:BLK) announced it will integrate climate data into its risk management platform.

As Seven Oaks preps to come public, it could ride this ESG wave. Keep a close eye on SVOKU stock and this upcoming IPO.

For more on ESG investing, check out the InvestorPlace.com Ultimate Guide here.

On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article. 

Sarah Smith is a Web Content Producer with InvestorPlace.com. 

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