Centurion Acquisition Corp. Announces Closing of $287.5 Million Initial Public Offering Including Full Exercise of Underwriters’ Over-Allotment Option

Rhea-AI Summary

Centurion Acquisition Corp. (Nasdaq: ALF), a blank check company, announced the closing of its $287.5 million initial public offering (IPO) which included the full exercise of the underwriters' over-allotment option. The offering consisted of 28,750,000 units at $10.00 per unit, with each unit including one Class A ordinary share and half a redeemable warrant. Concurrently, the company closed a private placement of 7,000,000 warrants at $1.00 per warrant, raising $7,000,000. The proceeds from the IPO and private placement, totaling $287.5 million, were placed in trust. The company aims to focus on technology sectors such as video gaming, interactive entertainment, cybersecurity, and artificial intelligence.

Positive

• Successful closing of $287.5 million IPO.
• Full exercise of underwriters’ over-allotment option.
• Raised additional $7 million from private placement of warrants.
• Units began trading on Nasdaq under ticker 'ALFUU'.
• Focus on high-growth technology sectors: video gaming, cybersecurity, AI.

Negative

• Dilution risk as each unit includes a redeemable warrant.
• Market risk: Technology sector focus may lead to volatility.
• Warrants exercisable at a relatively high price of $11.50 per share.
• Dependence on successful acquisition within specified sectors.

Insights

Financial Analyst

Centurion Acquisition Corp's IPO completion marks a significant financial milestone. The offering raised $287.5 million, including the exercise of the over-allotment option, at $10.00 per unit, which signifies strong demand. Each unit comprises one Class A ordinary share and half of a redeemable warrant, with whole warrants exercisable at $11.50 per share. This structure is attractive for investors looking for potential upside and liquidity options.

The placement of $287.5 million in a trust ensures that proceeds are safeguarded until a business combination is identified, reducing risk for investors. The fact that established financial institutions like Cantor Fitzgerald & Co. and Odeon Capital Group LLC are involved as underwriters adds credibility.

Furthermore, the private placement raised an additional $7 million, which indicates strong interest from insiders and affiliates, signaling confidence in the company's future prospects.

For retail investors, the successful IPO and additional private placement suggest a positive outlook for the stock in the short-term. However, the long-term performance will heavily depend on the company's ability to identify and successfully merge with a high-potential target in the tech sector.

Market Research Analyst

Centurion Acquisition Corp's focus on high-growth sectors such as video gaming, cybersecurity, AI and SaaS is strategically astute, given their robust growth trajectories. For instance, the video gaming industry has been expanding rapidly, driven by increased global engagement and technological advancements. Similarly, cybersecurity and AI are essential in today's digital landscape, promising high returns.

The company's structure as a blank check company (SPAC) allows it to hunt for promising acquisitions in these areas. SPACs provide a more streamlined route to public markets compared to traditional IPOs, which can be attractive for high-growth, possibly less-mature companies in the tech sector.

Ultimately, the success of Centurion will depend on the quality of the acquisition targets it identifies and its ability to integrate and grow these businesses. Retail investors should keep a close eye on any announcements regarding potential mergers or acquisitions, as these will significantly influence stock performance.

For those unfamiliar, a SPAC (Special Purpose Acquisition Company) is a company with no commercial operations, formed strictly to raise capital through an IPO for the purpose of acquiring an existing company. This structure can offer early exposure to high-growth sectors but also carries risks if no viable acquisition is found.

NEW YORK, June 12, 2024 (GLOBE NEWSWIRE) -- Centurion Acquisition Corp. (Nasdaq: ALF) (the “Company”) today announced the closing of its initial public offering of 28,750,000 units, which includes 3,750,000 units issued pursuant to the exercise by the underwriters of their over-allotment option, at a public offering price of $10.00 per unit. Each unit consists of one Class A ordinary share and one-half of one redeemable warrant, with each whole warrant exercisable to purchase one Class A ordinary share at a price of $11.50 per share.

The units are listed on The Nasdaq Global Market (“Nasdaq”) and commenced trading under the ticker symbol “ALFUU” on June 11, 2024. Once the securities comprising the units begin separate trading, the Class A ordinary shares and warrants are expected to be listed on Nasdaq under the symbols “ALF” and “ALFUW,” respectively.

Concurrently with the closing of the initial public offering, the Company closed on a private placement of 7,000,000 warrants at a price of $1.00 per warrant, resulting in gross proceeds of $7,000,000. Centurion Sponsor LP, the Company’s sponsor, purchased 4,500,000 of the private placement warrants, Cantor Fitzgerald & Co. purchased 1,750,000 of the private placement warrants and Odeon Capital Group LLC purchased 750,000 private placement warrants. Each private placement warrant is exercisable to purchase one Class A ordinary share at $11.50 per share. Of the proceeds received from the consummation of the initial public offering and a simultaneous private placement of warrants, $287,500,000 (or $10.00 per unit sold in the public offering) was placed in trust.

Centurion Acquisition Corp. is a blank check company formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses. The Company intends to focus on businesses that operate within the technology sector, with a focus on video gaming, interactive entertainment and enabling services and technologies, cybersecurity, artificial intelligence, machine learning, Software as a Service (“SaaS”) and deep tech technologies. 

Cantor Fitzgerald & Co. acted as the sole book-running manager of the offering. Odeon Capital Group LLC acted as co-manager of the offering.

A registration statement relating to these securities was declared effective by the U.S. Securities and Exchange Commission (the “SEC”) on June 10, 2024. 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 was made only by means of a prospectus. Copies of the prospectus relating to this offering may be obtained from Cantor Fitzgerald & Co., Attention: Capital Markets, 499 Park Avenue, 5th Floor New York, New York 10022, or by email at prospectus@cantor.com.

Cautionary Note Concerning Forward-Looking Statements

This press release contains statements that constitute “forward-looking statements,” including with respect to the Company’s search for an initial business combination and the anticipated use of the net proceeds of the initial public offering and simultaneous private placement. No assurance can be given that the net proceeds of the offering will be used as indicated. 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 for the initial public offering filed with the SEC. Copies are available on the SEC’s website, 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.

Contact

David Gomberg
President
Centurion Acquisition Corp.
david@centurionacquisition.com

FAQ

What is Centurion Acquisition Corp.'s IPO value?

Centurion Acquisition Corp.'s IPO raised $287.5 million.

What is the trading symbol for Centurion Acquisition Corp. units?

The units trade under the ticker symbol 'ALFUU'.

When did Centurion Acquisition Corp.'s units begin trading?

Centurion Acquisition Corp.'s units began trading on June 11, 2024.

What sectors will Centurion Acquisition Corp. focus on?

Centurion Acquisition Corp. will focus on technology sectors including video gaming, cybersecurity, and AI.

How much was raised from the private placement of warrants?

The private placement of warrants raised $7 million.

What is the exercise price for the warrants issued by Centurion Acquisition Corp.?

The warrants are exercisable at a price of $11.50 per share.