COVA Acquisition Corp. Announces Pricing of Upsized $261 Million Initial Public Offering

Rhea-AI Summary

COVA Acquisition Corp. announced the pricing of its initial public offering (IPO) at $10.00 per unit, with a total of 26,100,000 units offered. An additional 3,915,000 units are available for underwriters to cover over-allotments. The IPO is scheduled to begin trading on February 5, 2021, under the ticker symbol 'COVAU.' Each unit includes one Class A ordinary share and one-half of a redeemable warrant, with warrants exercisable at $11.50 per share. COVA aims to merge or acquire technology-focused businesses in Southeast Asia, backed by Crescent Cove Advisors LP.

Positive

• Upsized IPO of 26,100,000 units at $10 each indicates strong demand.
• Additional option for underwriters to purchase 3,915,000 units can bolster capital.
• Focus on high-growth technology sectors in Southeast Asia presents lucrative opportunities.

Negative

• Dependence on the successful consummation of the IPO amid market uncertainties.
• Potential risks associated with mergers and acquisitions in emerging markets.

COVA Acquisition Corp. (the “Company”) announced today that it priced its upsized initial public offering of 26,100,000 units at a price of $10.00 per unit. The Company intends to grant the underwriters a 45-day option to purchase up to 3,915,000 units to cover over-allotments, if any. The units are expected to commence trading on February 5, 2021 on The Nasdaq Capital Market (“Nasdaq”) and trade under the ticker symbol “COVAU.” Each unit consists of one Class A ordinary share of the Company and one-half of one redeemable warrant. Each whole warrant entitles the holder thereof to purchase one Class A ordinary share of the Company at a price of $11.50 per share. Once the securities comprising the units begin separate trading, the Class A ordinary shares and warrants are expected to be listed on the Nasdaq under the symbols “COVA” and “COVAW,” respectively.

The Company was formed by Crescent Cove Advisors LP (“Crescent Cove”) for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses. The Company intends to focus its search for a target in the high growth technology and tech-enabled businesses in Southeast Asia in the consumer internet, ecommerce, and software industries, but may pursue a target in any stage of its corporate evolution or in any industry, sector or geographic location. Based in San Francisco, Crescent Cove is a leading credit-focused investment firm that has built an exceptional track record investing in high growth ventures within the technology, media and telecommunications (“TMT”) middle-market, differentiated by its speed and flexibility in solving complex financing needs for tech entrepreneurs.

Cantor Fitzgerald & Co. is acting as sole book-running manager for the offering. The public offering will only be made by means of a prospectus. Copies of the preliminary prospectus relating to the offering and final prospectus, when available, may be obtained from: Cantor Fitzgerald & Co., Attn: Capital Markets, 499 Park Avenue, 5th Floor, New York, New York, 10022; Email: prospectus@cantor.com.

A registration statement relating to the securities became effective on February 4, 2021 in accordance with Section 8(a) of the Securities Act of 1933, as amended. 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.

Cautionary Note Concerning Forward Looking Statements

This press release includes forward-looking statements that involve risks and uncertainties. Forward looking statements are statements that are not historical facts. Such forward-looking statements, including the successful consummation of the Company’s initial public offering, are subject to risks and uncertainties, which could cause actual results to differ from the forward looking statements. The Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210204006171/en/

FAQ

What is the price of COVAU's initial public offering?

COVA Acquisition Corp. has priced its IPO at $10.00 per unit.

When will COVAU begin trading on Nasdaq?

COVAU is expected to commence trading on February 5, 2021.

What does each unit in the COVAU IPO consist of?

Each unit consists of one Class A ordinary share and one-half of a redeemable warrant.

What sectors is COVA Acquisition Corp. targeting for acquisitions?

COVA intends to focus on high-growth technology and tech-enabled businesses in Southeast Asia.

Who is managing the COVAU IPO?

Cantor Fitzgerald & Co. is acting as the sole book-running manager for the offering.