What are CAPS and how do they differ from typical SPACs?

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CAPS are a financial instrument offered by Executive Network Partnering Corp (ENPC), a special purpose acquisition company (SPAC), designed to minimize dilution compared to traditional SPACs.

Executive Network Partnering Corp (ENPC), a blank-cheque company backed by former US House Speaker Paul Ryan, is offering CAPS, which stands for "capital which aligns and partners with a sponsor." ENPC intends to raise US$300 million through an initial public offering (IPO) by selling 12 million CAPS on the New York Stock Exchange, with each CAPS comprising one share of Class A common stock and one-quarter of a redeemable warrant.
Structure of ENPC's CAPS Offering

ENPC is seeking to raise a total of US$300 million in its IPO, with plans to sell 12 million CAPS at a maximum price of US$25 per CAPS. The offering includes the listing of these CAPS on the New York Stock Exchange. Paul Ryan is slated to serve as the chairman of ENPC's board of directors.
Definition of a Special Purpose Acquisition Company (SPAC)

A special purpose acquisition company, commonly known as a SPAC, is a type of shell corporation that is formed to raise capital through an IPO. The primary objective of a SPAC is to acquire an existing operating company, typically within a two-year timeframe. This process allows private companies to become publicly traded without undergoing the traditional IPO process themselves.
Differentiating CAPS from Typical SPACs

ENPC's CAPS structure is presented as having a distinct difference from a conventional SPAC. According to ENPC's regulatory filing, CAPS are designed to minimize dilution for investors. This aims to create a process that is more comparable to a traditional initial public offering, offering a potentially more streamlined and less dilutive route for both the SPAC and the eventual target company.

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What are CAPS and how do they differ from typical SPACs?

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