Gores Holdings stock soars after SPAC’s deal to take United Wholesale Mortgage public

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Shares of Gores Holdings IV Inc. shot up 16% in premarket trading Wednesday, after the special purpose acquisition company (SPAC), also known as a blank-check company, announced it will take United Wholesale Mortgage public in deal that values the mortgage lender at $16.1 billion. The deal includes $425 million of cash from Gores and a $500 million private placement, which is anchored by “top tier” institutional investors. After the deal, the company will operate under the United Wholesale Mortgage (UWM) name, and the stock will be listed on the Nasdaq under the ticker symbol “UWMC.” Michigan-based United Wholesale said it is the largest wholesale mortgage originator in the U.S., and the companies boast that UWM’s valuation makes the deal the largest transaction by a SPAC to date. Gores’s stock, which went public in March, has gained 7.9% over the past three months through Tuesday, while the Renaissance IPO ETF has run up 23.1% and the S&P 500 has gained 5.9%.
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