Legato Merger Corp. III Announces Pricing of $175,000,000 Initial Public Offering

Rhea-AI Summary

Legato Merger Corp. III announced the pricing of its initial public offering of 17,500,000 units at $10.00 per unit, listing on the NYSE American Market under the ticker symbol 'LEGT U'. Each unit consists of one ordinary share and one-half of one redeemable warrant. The company's management team and underwriters for the offering are also detailed in the press release.

Insights

Financial Analyst

The initial public offering (IPO) of Legato Merger Corp. III represents a significant event in the capital markets, signaling potential growth and investment opportunities in the infrastructure, engineering, construction, industrial and renewables sectors. The pricing of the units at $10.00 aligns with the standard entry-point for Special Purpose Acquisition Companies (SPACs), which are designed to take companies public without going through the traditional IPO process.

The inclusion of redeemable warrants with an exercise price of $11.50 per share introduces a leveraged component to the investment, potentially amplifying returns for investors if the SPAC successfully merges with a high-value target. However, the risk of dilution exists if many warrant holders choose to exercise their rights, increasing the number of shares outstanding.

The management team's experience is crucial, as their expertise and network could significantly influence the success of the business combination. Investors often look at the track record of the SPAC management to gauge potential future performance.

Market Research Analyst

SPACs have become a popular vehicle for companies seeking to enter public markets and their performance often hinges on the quality of the target acquisition. Legato Merger Corp. III's non-binding intention to focus on specific industries such as infrastructure and renewables could attract investors who are bullish on these sectors, especially given current global trends towards sustainable energy and infrastructure development.

However, the broad and non-exclusive focus of the SPAC could also be a point of concern, as it may indicate a lack of a clear strategic direction. This could potentially lead to a prolonged search for a suitable target, which may impact the SPAC's performance and investor sentiment in the interim.

Moreover, the 45-day option for underwriters to purchase additional units to cover over-allotments is standard practice, providing a buffer for market demand fluctuations and potentially stabilizing the market post-IPO.

Legal Expert

Legato Merger Corp. III's IPO and the associated SEC registration underscore the regulatory framework that governs public offerings. The effectiveness of the registration statement on the same day as the announcement is indicative of thorough pre-filing preparations and compliance with SEC regulations.

The stipulation that the securities cannot be sold in jurisdictions where such an offer would be unlawful prior to registration or qualification under the respective securities laws is a standard legal safeguard. This protects both the company and potential investors from legal disputes related to the sale of unregistered securities.

Investors should be aware of the legal complexities surrounding SPACs, including the terms of the warrants, rights of shareholders post-merger and any risks disclosed in the prospectus that could affect their investment.

NEW YORK, Feb. 05, 2024 (GLOBE NEWSWIRE) -- Legato Merger Corp. III (the “Company”) announced today that it priced its initial public offering of 17,500,000 units at $10.00 per unit. The units will be listed on the NYSE American Market (“NYSE American”) and will begin trading tomorrow under the ticker symbol “LEGT U”. Each unit consists of one ordinary share and one-half of one redeemable warrant, each whole warrant entitling the holder thereof to purchase one ordinary share at a price of $11.50 per share, subject to adjustment. Only whole warrants are exercisable and will trade. Once the securities comprising the units begin separate trading, the ordinary shares and redeemable warrants are expected to be listed on NYSE American under the symbols “LEGT” and “LEGT WS,” respectively. 

Legato Merger Corp. III is a Cayman Islands exempted company incorporated for the purpose of entering into a merger, share exchange, asset acquisition, share purchase, recapitalization, reorganization or similar business combination with one or more businesses or entities. The Company’s efforts to identify a prospective target business will not be limited to a particular industry or geographic region although the Company intends to initially focus on target businesses in the infrastructure, engineering and construction, industrial and renewables industries. The Company’s management team is comprised of Gregory Monahan, Chief Executive Officer and Director, Eric S. Rosenfeld, Chief SPAC Officer, Adam Jaffe, Chief Financial Officer, Secretary and Director, Brian Pratt, Director and Non-Executive Chairman of the Board, David D. Sgro, Director and Non-Executive Vice Chairman of the Board, and Adam Semler and John Ing, each a Director of the Company. 

BTIG, LLC is acting as the sole book-running manager for the offering, with Craig-Hallum Capital Group LLC as co-manager. The Company has granted the underwriters a 45-day option to purchase up to an additional 2,625,000 units at the initial public offering price to cover over-allotments, if any.

The offering is being made only by means of a prospectus. Copies of the prospectus may be obtained, when available, from BTIG, LLC, 65 East 55th Street New York, New York 10022, Attn: Syndicate Department, BTIGSyndicateCoverage@btig.com.

A registration statement relating to these securities has been filed with the Securities and Exchange Commission (“SEC”) and became effective on February 5, 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 an 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 proposed initial public offering and the anticipated use of net proceeds. No assurance can be given that the offering discussed above will be completed on the terms described, or at all, or 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 and preliminary prospectus for the 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. 

Contacts:
Gregory Monahan
Chief Executive Officer
Legato Merger Corp. III
(212) 319-7676

FAQ

What is the ticker symbol for Legato Merger Corp. III on the NYSE American Market?

The ticker symbol for Legato Merger Corp. III on the NYSE American Market is 'LEGT U'.

How many units were offered in the initial public offering?

The initial public offering included 17,500,000 units.

What is the price per unit for the initial public offering?

The price per unit for the initial public offering is $10.00.

What is included in each unit offered in the initial public offering?

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

Who are the underwriters for the offering?

BTIG, LLC is acting as the sole book-running manager for the offering, with Craig-Hallum Capital Group LLC as co-manager.

What is the 45-day option granted to the underwriters?

The underwriters have been granted a 45-day option to purchase up to an additional 2,625,000 units at the initial public offering price to cover over-allotments, if any.