KKR Acquisition Holdings I Corp. (KAHC.U), a SPAC (special purpose acquisition company) founded by KKR & Co. and Lululemon Athletica Chairman and former Gap Inc. CEO Glenn Murphy, raised $1.2 billion in an upsized initial public offering.
The SPAC sold 120 million investment units, with each consisting of one Class A share and 0.25 warrants entitling the holder to a second share at $11.50 in the future. Underwriters were also granted options to buy another 18 million units for overallotments, potentially raising another $180 million.
The new SPAC’s units are listed on the New York Stock Exchange under the ticker “KAHC.U.” Its shares and warrants will also later trade separately under the tickers “KAHC” and “KAHC.WS,” respectively.
KKR and Murphy upsized the IPO from an original plan to only sell 100 million units and grant underwriters the option to buy 15 million more for overallotments. The SPAC’s executives wrote in an S-1 filing with the U.S. Securities and Exchange Commission that while KAHCU can invest in any industry, it expects to “identify, acquire and manage a business in the consumer or retail industries.”
Prior to heading Lululemon’s board, Murphy served as chairman and CEO of Gap Inc. from 2007 to 2014. Before that, he served as chairman and CEO of Shoppers Drug Mart. Murphy is also the founder of FIS Holdings, an investment firm that’s taken stakes over the years in Lululemon, Whole Foods Market, Bloomin’ Brands, and other consumer businesses.
Photo courtesy Lululemon
