Legato Merger Corp. II Announces Closing of Upsized $240,000,000 Initial Public Offering

Rhea-AI Summary

Legato Merger Corp. II has successfully closed its upsized initial public offering, raising $240 million by selling 24 million units at $10 each. The units, which consist of one common stock share and half a warrant, began trading on Nasdaq under the ticker symbol 'LGTOU' on November 22, 2021. Each whole warrant grants the right to purchase a share of common stock at $11.50. The Company aims to identify merger opportunities primarily in the infrastructure, engineering, construction, and renewables sectors. EarlyBirdCapital, Inc. served as the sole book-running manager for the offering.

Positive

• Raised $240 million through the IPO, increasing financial resources for future business combinations.
• Focus on high-potential sectors like infrastructure and renewables, which may drive long-term growth.

Negative

• Dependence on identifying suitable merger targets, which could pose risks to capital deployment.
• Potential dilution risk for existing shareholders if warrants are exercised.

NEW YORK, Nov. 24, 2021 (GLOBE NEWSWIRE) -- Legato Merger Corp. II (the “Company”) announced today that it closed its upsized initial public offering of 24,000,000 units at $10.00 per unit. The units are listed on the Nasdaq Global Market (“Nasdaq”) and began trading on November 22, 2021 under the ticker symbol “LGTOU”. Each unit consists of one share of common stock and one-half of one redeemable warrant, with each whole warrant entitling the holder thereof to purchase one share of common stock 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 common stock and redeemable warrants are expected to be listed on Nasdaq under the symbols “LGTO” and “LGTOW,” respectively. 

Legato Merger Corp. II is a Delaware corporation incorporated as a blank check company 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 and Secretary, Brian Pratt, Chairman of the Board, David D. Sgro, Vice Chairman of the Board, and Adam Semler, Ryan Hummer, D. Blair Baker, John Ing, and Craig Martin, each a Director of the Company. 

EarlyBirdCapital, Inc. acted as the sole book-running manager for the offering. The Company has granted the underwriters a 45-day option to purchase up to an additional 3,600,000 units at the initial public offering price to cover over-allotments, if any.

The offering has been made only by means of a prospectus. Copies of the prospectus may be obtained, when available, from EarlyBirdCapital, Inc., 366 Madison Avenue, 8th Floor, New York, NY 10017, Attn: Syndicate Department, 212-661-0200.

Registration statements relating to these securities have been filed with the Securities and Exchange Commission (“SEC”) and became effective on November 22, 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 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 anticipated use of net proceeds. 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 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. II
212-319-7676

FAQ

What is the purpose of Legato Merger Corp. II's IPO?

The IPO aims to raise capital for potential mergers or acquisitions, primarily in the infrastructure and renewables sectors.

When did Legato Merger Corp. II start trading on Nasdaq?

Legato Merger Corp. II began trading on Nasdaq on November 22, 2021, under the ticker symbol 'LGTOU'.

What are the details of the units offered by Legato Merger Corp. II?

Each unit consists of one share of common stock and one-half of a redeemable warrant. Whole warrants can be exercised for shares at $11.50 each.

Who managed the IPO for Legato Merger Corp. II?

EarlyBirdCapital, Inc. acted as the sole book-running manager for the IPO.

What financial risks does Legato Merger Corp. II face post-IPO?

The company faces risks related to the successful identification of merger targets and potential dilution if warrants are exercised.