Four Leaf Acquisition Corp. (FORLU) priced its downsized SPAC IPO – 5.2 million units – down from 6.5 million units in the prospectus – at $10.00 to raise $52.0 million on Thursday night (March 16, 2023). Focused on the Internet of Things (IoT) segment, Four Leaf Acquisition is the first SPAC – or blank check company – to go public in March. For the year, Four Leaf Acquisition ranks as the eighth SPAC IPO priced in 2023 so far.
At the close on Friday, March 17th – St. Patrick’s Day – Four Leaf Acquisition was at $10.20 – up 20 cents from its $10.00 SPAC IPO unit price – for a gain of 2 percent in its NASDAQ debut. Each unit consisted of one share of common stock – NASDAQ symbol “FORL” – and one warrant – NASDAQ symbol “FORLW” – to buy one share of stock. Four Leaf Acquisition’s first day of NASDAQ trading got off to a good start on Friday when it opened at $10.16 – up 16 cents or up 1.6 percent – and edged higher to $10.17 – and it just kept going. Volume at the close: 7.24 million shares.
EF Hutton was the sole book-runner.
At pricing, Four Leaf Acquisition’s IPO was cut by 20 percent. That reflects the trend: Three IPOs got done this week – and all three deals were downsized at pricing as stocks swung wildly on bank failures – and bank rescue plans.
Four Leaf Acquisition, based in Los Altos, California, says it intends to search for target companies in the Internet of Things (IoT) segment or related businesses, according to the prospectus. “IoT” refers to “smart devices” – physical objects with sensors, processing ability, software and other technologies that connect and exchange data with other devices and systems over the Internet or other communications networks.
Angel Orrantia, the founder and CEO of Four Leaf Acquisition Corp., is the president of i2i, LLC (idea to IPO), a corporate strategy services firm that provides business strategy and legal guidance to entrepreneurs, venture-backed startups and investors seeking to raise money or drive business expansion, according to the prospectus. He is also a partner and advisor at Advantary LLC, a full-service management accelerator that provides business leadership and legal counsel for clients across cloud computing, AI, semiconductor, enterprise software, IoT and agricultural markets.
“We intend to target companies in both developing markets (e.g., China and India), and the developed markets (e.g., United States and Europe),” the prospectus says.
Four Leaf Acquisition says that it will exclude consideration of “any company whose financial statements are audited by an accounting firm that the United States Public Company Accounting Oversight Board, or the PCAOB, is unable to inspect for two consecutive years beginning in 2021 and any target company with China operations consolidated through a variable interest entity, or a VIE, structure.”
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