Stellar V Capital Corp. Announces Closing of $150 Million Initial Public Offering

Rhea-AI Summary

Stellar V Capital Corp has successfully closed its initial public offering (IPO) of 15,000,000 units at $10.00 per unit, raising gross proceeds of $150,000,000. The units began trading on the Nasdaq Global Market under the symbol SVCCU on January 30, 2025.

Each unit comprises one Class A ordinary share and one-half of one redeemable warrant, with each whole warrant allowing the purchase of one Class A ordinary share at $11.50. The Class A ordinary shares and warrants will trade separately under the symbols SVCC and SVCCW respectively.

The SPAC is led by co-CEOs Prokopios Tsirigakis and George Syllantavos, with board members Nicolas Bornozis, Christopher Thomas, and Harry Braunstein. BTIG, served as the sole book-running manager for the offering.

Positive

• Successfully raised $150 million in gross proceeds through IPO
• Listed on Nasdaq Global Market, providing strong market visibility
• Warrant structure provides potential upside for investors at $11.50 exercise price

Negative

• No specific business combination target identified yet
• SPAC structure carries inherent risks of investment uncertainty
• Potential dilution from warrant exercises

Insights

Investment Banking Analyst

The successful completion of Stellar V Capital Corp.'s $150 million SPAC IPO marks a noteworthy transaction in today's more selective SPAC market. The standard unit structure, combining shares with warrants, provides investors with both immediate equity exposure and leveraged upside potential through the $11.50 warrant exercise price.

The Cayman Islands domicile is particularly strategic, offering tax efficiency and flexibility for potential cross-border business combinations, especially with Asian targets. The management team, led by co-CEOs Tsirigakis and Syllantavos, brings significant SPAC expertise, having previously led successful business combinations in the maritime and energy sectors.

BTIG's role as sole book-runner is notable, as they have a strong track record in SPAC offerings and maintain robust relationships with institutional investors. The $10 unit pricing and $150 million size positions this SPAC in the sweet spot for targeting middle-market opportunities, where competition for deals is relatively less intense than in the larger-cap space.

For investors, the key considerations include:

• The 18-24 month timeline typically allowed for completing a business combination
• The redemption right that provides downside protection at the $10 trust value
• The warrant component offering additional return potential if a successful merger is completed
• The requirement for shareholder approval of any proposed business combination

NEW YORK, Jan. 31, 2025 (GLOBE NEWSWIRE) -- Stellar V Capital Corp. (the “Company”), a newly organized special purpose acquisition company formed as a Cayman Islands exempted company, today announced the closing of its initial public offering of 15,000,000 units. The offering was priced at $10.00 per unit, resulting in gross proceeds of $150,000,000.

The Company’s units began trading on January 30, 2025 on the Nasdaq Global Market (“Nasdaq”) under the ticker symbol “SVCCU.” Each unit consists of one Class A ordinary share and one-half of one redeemable warrant. Each whole warrant entitles the holder thereof to purchase one Class A ordinary share at $11.50 per share. No fractional warrants will be issued upon separation of the units and only whole warrants will trade. Once the securities comprising the units begin separate trading, the Class A ordinary shares and the warrants will be traded on Nasdaq under the symbols “SVCC” and “SVCCW,” respectively.

The Company’s management team is led by co-CEOs Prokopios (Akis) Tsirigakis and George Syllantavos who are also the Company’s directors. In addition, the Company’s board includes Nicolas Bornozis, Christopher Thomas and Harry Braunstein.

The Company intends to use the net proceeds from the offering, and the simultaneous private placements of units and warrants, to consummate the Company’s initial business combination.

BTIG, LLC acted as sole book-running manager for the offering.

The offering was made only by means of a prospectus. Copies of the prospectus may be obtained from BTIG, LLC, 65 East 55th Street New York, New York 10022, or by email at ProspectusDelivery@btig.com or by accessing the Securities and Exchange Commission (“SEC”)’s website, www.sec.gov.

A registration statement relating to the securities has been filed with, and declared effective by the SEC. This press release shall not constitute an offer to sell or a 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.

About Stellar V Capital Corp.

Stellar V Capital Corp. is a blank check company, also commonly referred to as a special purpose acquisition company, or SPAC, formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses.

Forward-Looking Statements

This press release contains statements that constitute “forward-looking statements,” including with respect to the anticipated use of the net proceeds thereof and the Company’s search for an initial business combination. 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 prospectus for the IPO 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:
Anastasios (Tassos) Chrysostomidis Vice President of Business Development Stellar V Capital Corp. www.stellaracquisition.com Email: inquiries@stellaracquisition.com		Daniela Guerrero Investor Relations/Media Capital Link, Inc. 230 Park Avenue, Suite 1540 New York, N.Y. 10169 Tel.: (212) 661-7566 Email: stellaracquisition@capitallink.com

FAQ

What was the total amount raised in Stellar V Capital Corp's IPO (SVCCU)?

Stellar V Capital Corp raised $150 million in gross proceeds through its IPO, selling 15,000,000 units at $10.00 per unit.

What is the warrant structure for Stellar V Capital Corp's units (SVCCU)?

Each unit consists of one Class A ordinary share and one-half of one redeemable warrant. Each whole warrant allows the purchase of one Class A ordinary share at $11.50.

When did Stellar V Capital Corp (SVCCU) begin trading on Nasdaq?

Stellar V Capital Corp began trading on the Nasdaq Global Market on January 30, 2025.

What are the separate trading symbols for Stellar V Capital Corp's securities?

The units trade under SVCCU, while the Class A ordinary shares and warrants will trade under SVCC and SVCCW respectively.