The IPO Buzz: GP-Act III Acquisition (GPATU) Raises $250 Million in SPAC IPO

GP-Act III  Acquisition Corp. (GPATU) raised $250 million in its SPAC IPO – the second blank check IPO in May – on Wednesday night, May 8, 2024. The SPAC’s initial public offering consisted of 25.0 million units at $10.00 each. An individual unit was made up of one Class A ordinary share and one-half of a redeemable warrant. Each whole warrant can be redeemed for one Class A ordinary share, the prospectus says. GP-Act III Acquisition Corp. is incorporated in the Cayman Islands.

This SPAC IPO represents GP-Act III’s second attempt to go public. Its previous SPAC IPO filing was withdrawn in November 2022.

GP-Act III Acquisition’s SPAC IPO began trading at $10.06 – up 6 cents – on volume of about 1.28 million shares at 11:37 a.m. EDT today – Thursday, May 9, 2024 – on the NASDAQ.

Cantor served as the sole book-runner of this SPAC IPO.

“We intend to focus our search on high potential businesses based in the United States,” the prospectus says.

Backing from Brazil

As the name indicates, this is the third SPAC (special-purpose acquisition company) backed by GP Investments, a leading private equity firm.

“GP Investments played an active role in the first wave of (the) Internet investment in Brazil,” the prospectus says. GP Investments backed more than 20 companies during that period.

Antonio Bonchristiano, the CEO of GP-Act III Acquisition Corp., has served as the CEO of GP Investments since April 2014, the prospectus says. Bonchristiano joined GP Investments in 1993. He became a managing director in 1995. He worked for Salomon Brothers in London and New York from 1987 to 1990.

Irwin Simon, the founder and the former chairman and CEO of Hain Celestial Group, an organic tea company, leads the SPAC’s co-sponsor, IDS III LLC, the prospectus says. Simon is the chairman and CEO of Tilray (TLRY), a global leader in cannabis research and production.

Steven Spinner, the CEO and chairman of United Natural Foods, Inc. (UNFI), leads the SPAC’s other co-sponsor, Boxcar Partners III, LLC, the prospectus says.

 

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