Provident Acquisition Corp. Announces Pricing of $200 Million Initial Public Offering

Rhea-AI Summary

Provident Acquisition Corp. announced its initial public offering (IPO) pricing of 20 million units at $10.00 each, to be listed on Nasdaq as 'PAQCU' starting January 8, 2021. Each unit comprises one Class A ordinary share and a half warrant, allowing share purchases at $11.50. The offering aims to facilitate mergers or acquisitions, primarily focusing on consumption-driven companies in Southeast Asia's technology sector. Citigroup acts as the sole bookrunner, with a potential for an additional 3 million units for over-allotments. The offering is set to close on January 12, 2021.

Positive

• Initial public offering of 20 million units priced at $10.00 each.
• Focus on consumption-focused companies with growth potential in Southeast Asia.
• Listing on Nasdaq expected to increase visibility and attract investors.

Negative

• No assurance of successful completion of the IPO or subsequent business combination.

Provident Acquisition Corp. (the “Company”) today announced the pricing of its initial public offering of 20,000,000 units at a price of $10.00 per unit. The units are expected to be listed for trading on the Nasdaq Capital Market under the ticker symbol “PAQCU” beginning January 8, 2021. Each unit consists of one of the Company’s Class A ordinary shares and one-half of one redeemable warrant. Each whole warrant entitles the holder thereof to purchase one Class A ordinary share at a price of $11.50 per share. Once the securities comprising the units begin separate trading, the Company expects that its Class A ordinary shares and warrants will be listed on the Nasdaq Capital Market under the symbols ‘‘PAQC” and ‘‘PAQCW,’’ respectively.

The Company was formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses. Although the Company’s efforts to identify a prospective business combination opportunity will not be limited to a particular industry, it intends to focus on consumption-focused companies with disruptive growth potential that have operations or prospective operations in Asia, with a particular focus on the technology sector in Southeast Asia.

Citigroup Global Markets Inc. is acting as sole bookrunner. The Company has granted the underwriter a 45-day option to purchase up to 3,000,000 additional units at the initial public offering price to cover over-allotments, if any.

The public offering is being made only by means of a prospectus. When available, copies of the prospectus relating to the offering may be obtained from Citigroup Global Markets Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, via telephone at 1-800-831-9146 or via email prospectus@citi.com.

A registration statement relating to the securities became effective on January 7, 2021. This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities, 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 is expected to close on January 12, 2021, subject to customary closing conditions.

Forward-Looking Statements

This press release contains statements that constitute “forward-looking statements,” including with respect to the proposed initial public offering and the Company’s plans with respect to the target industry for a potential business combination. No assurance can be given that the offering discussed above will be completed on the terms described, or at all, or that the Company will ultimately complete a business combination transaction. 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 Company’s offering filed with the U.S. Securities and Exchange Commission (the “SEC”). Copies of these documents 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 law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210107005927/en/

FAQ

What is the initial price for Provident Acquisition Corp.'s IPO?

The initial public offering (IPO) price for Provident Acquisition Corp. is $10.00 per unit.

When will the shares of Provident Acquisition Corp. start trading?

The shares of Provident Acquisition Corp. are expected to start trading on January 8, 2021.

What is included in each unit offered in the IPO?

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

What is the focus of Provident Acquisition Corp.'s business strategy?

The company intends to focus on consumption-focused companies with disruptive growth potential, especially in Southeast Asia's technology sector.

Who is the underwriter for Provident Acquisition Corp.'s IPO?

Citigroup Global Markets Inc. is acting as the sole bookrunner for the IPO.