The IPO Buzz: Black Spade Acquisition II (BSIIU) Raises $150 Million in SPAC IPO

Entertainment and lifestyle-focused Black Spade Acquisition II (BSIIU) raised $150 million – as expected – with the pricing of its SPAC IPO of 15.0 million units at $10.00 each on Tuesday night, Aug. 27, 2024. Each unit consists of one Class A ordinary share and one-third of one redeemable warrant. Black Spade Acquisition II shares opened at $9.93 – 7 cents below their IPO price – on Wednesday, Aug. 28, 2024 – on the NASDAQ. The stock hit a session low at $9.92. Around 12:28 p.m. EDT, Black Spade Acquisition II’s stock was trading at $9.94 – still below its IPO price – on volume of about 9.95 million shares.  Black Spade Acquisition II shares closed at $9.93 on Wednesday, Aug. 28, on volume of 13,052,699 shares.

Clear Street and Cohen & Company Capital Markets acted as the joint book-runners.

Black Spade Acquisition II intends to focus its search for target companies on those in the entertainment, lifestyle and tech sectors, with an emphasis on businesses involved with AI (artificial intelligence), according to the prospectus. Black Spade Acquisition II is backed by Black Spade Capital Limited, the private investment arm of Lawrence Ho. Mr. Ho runs the Melco Group, which is credited with redefining the premium mass gaming segment in Macau. Melco Group owns and operates five Forbes Travel Guide Five-Star hotels in Asia. In addition, the Melco Group has been honored by Michelin Guide Hong Kong & Macau 2024 with a collective total of eight Michelin stars across five restaurants located in its properties, including City of Dreams, Studio City and Altira Macau.

Black Spade Acquisition II is incorporated in the Cayman Islands.

The first publicly traded SPAC under the Black Spade name – Black Spade Acquisition – entered into a business combination with electric vehicle (EV) manufacturer VinFast Auto (VFS) of Vietnam in August 2023. VinFast was the first Vietnamese business to list in the U.S. by way of a business combination, the prospectus said.

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