News round-up: Trump’s SPAC deal surges for second day; UK's chancellor launches £1.4bn fund to increase overseas investment; Atrato Onsite Energy’s all-female board plans to raise £150m in IPO

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Trump’s SPAC deal surges for second day, nets massive profits for hedge funds

Blank-check acquisition company, Digital World Acquisition’s shares doubled in value after announcing its plans to publicly list former U.S. President Donald Trump’s new social media outlet, TRUTH Social.

The Miami-based special purpose acquisition company soared more than 350% on Thursday after the merger news with Trump’s media company for this new venture, giving DWAC.O a market capitalisation of almost $1.5 billion and earning a group of 11 hedge funds including DE Shaw and Saba Capital millions of dollars.

Trump’s new venture aims to compete against Facebook and Twitter, creating a platform for his supporters ahead of a potential run for office in 2024.

Hedge funds bought the initial public offering of Digital World Acquisition Corporation and hedge fund investors owned nearly all its $293 million IPO, which listed 25m units and had generous offerings to investors participating in what was a poor deal.

This new deal with Trump has been very rewarding with the 25m units holding a worth of more than $1 billion on Thursday.

Chancellor Rishi Sunak launches £1.4bn fund to increase overseas investment

The UK government announced its plans to launch a £1.4 billion fund to channel more overseas investments into the UK economy, in hopes of recovering from the pandemic.

The government is to launch a £1.4bn fund to attract more overseas investment into the UK economy, particularly in sectors such as life sciences and electric vehicle production.

International companies will receive grants towards their schemes if they are able to show that they can provide value to taxpayers.

In the budget announcement on Wednesday, Sunak added that the government intends to lure highly skilled foreign workers and amend regulations for companies looking to relocate to the UK.

“We want to make the UK the best place in the world to start, grow and invest in a business, as we continue to support enterprise, create jobs, and level up as we recover from the pandemic,” Sunak said.

In addition to that, the government is to create new re-domiciliation rules and is expected to launch a consultation.

Atrato Onsite Energy’s all-female board plans to raise £150m in IPO 

Green investment trust Atrato Onsite Energy is expected to become the first company to float on the London Stock Exchange led by an all-female board.

As Atrato exceeds voluntary targets to get women into more senior roles, this marks another win for diversity advocates after the Hampton-Alexander review revealed that it had achieved its target of 33% board positions at FTSE 100 and FTSE 250 firms at the end of 2020.

Juliet Davenport, Atrato chair, head of audit committee, Marlene Wood and non-executive director Faye Goss will run Atrato’s operations with the firm’s investment plans being in solar photovoltaic panels installed on the roofs of warehouses, factories, and other industrial building.

Atrato’s investment in solar panels and other related infrastructure would provide companies the opportunity to reduce their carbon footprint and energy bills besides offering investors stability in green investments.

Stephanie Taylor

Head of Event Content, HFM

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