Digital Transformation Opportunities Corp. Announces Closing of Upsized $333.5 Million Initial Public Offering

Rhea-AI Summary

Digital Transformation Opportunities Corp. has successfully closed its upsized initial public offering of 33,350,000 units at $10.00 per unit, including 3,350,000 units from the underwriter's over-allotment option. The units traded on the Nasdaq under ticker 'DTOCU' starting March 10, 2021. Each unit comprises one share of Class A common stock and a quarter warrant to purchase additional shares at $11.50. The firm aims to pursue business combinations primarily in the healthcare sector, led by experienced executives including Kevin Nazemi and Kyle Francis.

Positive

• Successfully raised $333.5 million from the IPO.
• Focused on mergers in the healthcare technology sector, which has growth potential.
• Experienced leadership team with a strong background in healthcare and technology.

Negative

• Uncertainty regarding the completion of a business combination.
• Potential dilution for existing shareholders with future share offerings.

Digital Transformation Opportunities Corp. (the “Company”) today announced the closing of its upsized initial public offering of 33,350,000 units at a price of $10.00 per unit, including 3,350,000 units issued pursuant to the underwriter’s exercise of its over-allotment option. The units began trading on the Nasdaq Capital Market under the ticker symbol “DTOCU” on March 10, 2021. Each unit consists of one share of the Company’s Class A common stock and one-fourth of one redeemable warrant. Each whole warrant entitles the holder thereof to purchase one share of Class A common stock at a price of $11.50 per share. Once the securities comprising the units begin separate trading, the Company expects that its Class A common stock and warrants will be listed on the Nasdaq Capital Market under the symbols “DTOC” and “DTOCW,” respectively.

The Company was formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses or entities. Although the Company’s efforts to identify a prospective business combination opportunity will not be limited to a particular industry, it intends to focus on businesses in the healthcare industry, with a particular focus on healthcare technology and adjacent verticals.

The Company is led by Chief Executive Officer and Chairman Kevin Nazemi, who co-founded Oscar Health and served as its Co-Chief Executive Officer and co-founded Renew Health and served as its Chief Executive Officer. He concurrently serves as a director of Premera Blue Cross. Kyle Francis, former Chief Executive Officer and Chief Financial Officer of Southern California Reproductive Center, will be the Chief Financial Officer of the Company. The team also includes independent directors Bradley Fluegel, former Chief Strategy Officer of Walgreens and Anthem, Jim Moffatt, former Global Chief Executive Officer of Deloitte Consulting, and Heather Zynczak, former Chief Marketing Officer of Pluralsight, Inc. and Domo, Inc.

Barclays Capital Inc. served as sole book-running manager for the offering.

The public offering was made only by means of a prospectus. Copies of the prospectus relating to the offering may be obtained from Barclays Capital Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, telephone: (888) 603-5847, email: barclaysprospectus@broadridge.com.

A registration statement relating to the securities became effective on March 9, 2021. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

Forward-Looking Statements

This press release contains statements that constitute “forward-looking statements,” including with respect to the Company’s plans with respect to the target industry for a potential business combination. No assurance can be given that the Company will ultimately complete a business combination transaction. Forward-looking statements are subject to numerous conditions, many of which are beyond the control of the Company, including those set forth in the Risk Factors section of the Company’s registration statement and preliminary prospectus for the Company’s offering filed with the U.S. Securities and Exchange Commission (the “SEC”). Copies of these documents are available on the SEC’s website, at www.sec.gov. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210312005473/en/

FAQ

What was the price of Digital Transformation Opportunities Corp.'s IPO?

The IPO was priced at $10.00 per unit.

What does each unit consist of in the DTOCU offering?

Each unit consists of one share of Class A common stock and one-fourth of one redeemable warrant.

What is the intended focus of Digital Transformation Opportunities Corp.?

The company intends to focus on business combinations in the healthcare industry, particularly in healthcare technology.

When did Digital Transformation Opportunities Corp. begin trading?

The units began trading on March 10, 2021.

What are the trading symbols for the shares and warrants of DTOCU?

The Class A common stock will trade under 'DTOC' and the warrants under 'DTOCW' once they start separate trading.