Digital Transformation Opportunities Corp. Announces Pricing of Upsized $300 Million Initial Public Offering

Rhea-AI Summary

Digital Transformation Opportunities Corp. announced the pricing of its upsized IPO of 30,000,000 units at $10.00 each, set to trade on Nasdaq under symbol DTOCU starting March 10, 2021. Each unit includes one share of Class A common stock and one-fourth of a warrant, which can be exercised for one share at $11.50. The company aims to pursue a business combination, focusing on healthcare technology. The IPO closes on March 12, 2021, with Barclays Capital acting as the sole book-running manager.

Positive

• Successful upsizing of IPO to 30,000,000 units at $10 each.
• Focus on healthcare technology, a potentially lucrative market.

Negative

• Potential dilution of shares if the underwriter exercises the option for 4,500,000 additional units.
• Uncertainty regarding the completion of the offering and future business combination.

Digital Transformation Opportunities Corp. (the “Company”) today announced the pricing of its upsized initial public offering of 30,000,000 units at a price of $10.00 per unit. The units are expected to be listed for trading on the Nasdaq Capital Market under the ticker symbol “DTOCU” beginning 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. is acting as sole book-running manager for the offering. The Company has granted the underwriter a 45-day option to purchase up to an additional 4,500,000 units at the initial public offering price to cover over-allotments, if any.

The public offering is being made only by means of a prospectus. When available, 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. The offering is expected to close on March 12, 2021, subject to customary closing conditions.

Forward-Looking Statements

This press release contains statements that constitute “forward-looking statements,” including with respect to the proposed initial public offering and the Company’s plans with respect to the target industry for a potential business combination. No assurance can be given that the offering discussed above will be completed on the terms described, or at all, or 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/20210309006124/en/

FAQ

What is the price and size of Digital Transformation Opportunities Corp's IPO?

The IPO is priced at $10.00 per unit for a total of 30,000,000 units.

When will the shares of DTOCU start trading on Nasdaq?

The shares are expected to start trading on Nasdaq on March 10, 2021.

What does each unit in the IPO consist of?

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

What is the exercise price of the warrant associated with the units?

Each whole warrant entitles the holder to purchase one share of Class A common stock at $11.50.

When is the closing date for the IPO of DTOCU?

The offering is expected to close on March 12, 2021.