M3-Brigade Acquisition V Corp. Announces Closing of $287.5 Million Initial Public Offering

Rhea-AI Summary

M3-Brigade Acquisition V Corp. (MBAVU) has successfully closed its initial public offering of 28,750,000 units at $10.00 per unit, raising a total of $287.5 million. The offering included the full exercise of the underwriters' over-allotment option for 3,750,000 units. Each unit comprises one Class A ordinary share and one-half of a redeemable public warrant.

The units began trading on the Nasdaq Global Market under the ticker symbol 'MBAVU' on August 1, 2024. Once separate trading begins, the Class A ordinary shares and public warrants are expected to trade under 'MBAV' and 'MBAVW', respectively. The company, led by Executive Chairman Mohsin Y. Meghji and CEO Matthew Perkal, aims to pursue a business combination in various sectors.

Positive

• Successful IPO raising $287.5 million
• Full exercise of over-allotment option, indicating strong demand
• Listing on Nasdaq Global Market, providing liquidity and visibility

Negative

• None.

Insights

Financial Analyst

The successful $287.5 million IPO of M3-Brigade Acquisition V Corp. signals strong investor interest in SPACs despite recent market challenges. With units priced at $10 each, the full exercise of the over-allotment option indicates robust demand. The SPAC structure, combining shares and warrants, offers investors potential upside through the $11.50 warrant exercise price.

However, investors should note that SPACs carry inherent risks. The 24-month timeframe to complete a business combination adds pressure and the lack of a specific target industry increases uncertainty. The involvement of experienced sponsors like Mohsin Y. Meghji and Matthew Perkal may mitigate some risks, but thorough due diligence on any proposed merger target will be important for long-term value creation.

Market Research Analyst

The successful IPO of M3-Brigade Acquisition V Corp. reflects a potential resurgence in the SPAC market. Despite a slowdown in SPAC activity since 2021, this $287.5 million raise suggests renewed investor appetite for alternative investment vehicles. The full exercise of the over-allotment option is particularly noteworthy, indicating strong demand.

However, it's important to consider the broader market context. With rising interest rates and economic uncertainties, investors may be seeking opportunities with potential downside protection. The SPAC structure, with its redemption rights, could be appealing in this environment. Yet, the success of this SPAC will ultimately depend on its ability to identify and execute a value-creating business combination in a competitive landscape.

NEW YORK, Aug. 2, 2024 /PRNewswire/ -- M3-Brigade Acquisition V Corp. (the "Company"), a special purpose acquisition company, announced today 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 in full, at a price of $10.00 per unit. The units were listed on the Nasdaq Global Market ("Nasdaq") and began trading under the ticker symbol "MBAVU" on August 1, 2024. Each unit consists of one Class A ordinary share of the Company and one-half of one redeemable public warrant. Each whole public 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 public warrants are expected to be listed on the Nasdaq under the symbols "MBAV" and "MBAVW," respectively.

The Company is sponsored by M3-Brigade Sponsor V LLC, a Delaware limited liability company, and is led by Mohsin Y. Meghji as the Executive Chairman of the Board of Directors and Matthew Perkal as Chief Executive Officer and Director. The Company is a newly organized blank check company formed in March 2024 for the purpose of effecting a merger, consolidation, capital stock exchange, share exchange, asset acquisition, share purchase, stock purchase, reorganization or business combination with one or more businesses.

Cantor Fitzgerald & Co. acted as the sole book-running manager for this offering. The offering was made only by means of a prospectus. Copies of the final prospectus may be obtained from:

• Cantor Fitzgerald & Co, Attention: Capital Markets, 499 Park Avenue, 5th Floor New York, New York 10022; Email: prospectus@cantor.com

The registration statement relating to the securities became effective on July 31, 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.

Cautionary Note Concerning Forward-Looking Statements

This press release contains statements that constitute "forward-looking statements," including with respect to the initial public offering, the search for an initial business combination and the anticipated use of the net proceeds. No assurance can be given that the search for an initial business combination will be completed on the terms described, or at all, or that the net proceeds of the initial public 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 final prospectus relating to the Company's initial public offering filed with the Securities and Exchange Commission (the "SEC"). Copies 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 applicable law.

Contact:

M3-Brigade Acquisition V Corp.
c/o M3 Partners, LP
1700 Broadway
19th Floor
New York, NY 10019
T: 212-202-2200
www.m3-brigade.com

Investor Relations
Kristin Celauro  
(212) 202-2223

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SOURCE M3-Brigade Acquisition V Corp.

FAQ

What was the total amount raised in M3-Brigade Acquisition V Corp's (MBAVU) IPO?

M3-Brigade Acquisition V Corp (MBAVU) raised $287.5 million in its initial public offering by selling 28,750,000 units at $10.00 per unit.

When did M3-Brigade Acquisition V Corp (MBAVU) units start trading on Nasdaq?

M3-Brigade Acquisition V Corp (MBAVU) units began trading on the Nasdaq Global Market on August 1, 2024, under the ticker symbol 'MBAVU'.

What does each unit of M3-Brigade Acquisition V Corp (MBAVU) consist of?

Each unit of M3-Brigade Acquisition V Corp (MBAVU) consists of one Class A ordinary share and one-half of one redeemable public warrant.

What is the purpose of M3-Brigade Acquisition V Corp (MBAVU)?

M3-Brigade Acquisition V Corp (MBAVU) is a special purpose acquisition company formed to effect a merger, consolidation, capital stock exchange, asset acquisition, or similar business combination with one or more businesses.