Columbus Acquisition Corp Announces Closing of $60 Million Initial Public Offering

Rhea-AI Summary

Columbus Acquisition Corp has successfully completed its initial public offering (IPO) of 6,000,000 units at $10.00 per unit, raising aggregate gross proceeds of $60 million. Each unit comprises one ordinary share and one right to receive one-seventh of an ordinary share upon completing an initial business combination.

The units began trading on Nasdaq Global Market under the symbol 'COLAU' on January 23, 2025. The ordinary shares and rights will separately trade under 'COLA' and 'COLAR' respectively. A.G.P./Alliance Global Partners served as the sole book-running manager, with The Benchmark Company as co-manager. The underwriters have a 45-day option to purchase up to 900,000 additional units to cover over-allotments.

Positive

• Successfully raised $60 million through IPO
• Listed on major exchange (Nasdaq Global Market)
• 45-day over-allotment option for additional 900,000 units

Negative

• Blank check company with no operating business
• Dilutive structure with additional share rights
• No guaranteed successful business combination

Insights

SPAC Investment Analyst

This SPAC IPO represents a notable development in the current market environment, though its $60 million size positions it in the smaller tier of blank check companies. The unit structure, combining one ordinary share with a 1/7th share right, offers an interesting value proposition for early investors. This fractional right structure is less dilutive compared to traditional warrant-based SPAC units, potentially indicating management's confidence in executing a value-accretive business combination.

The 45-day over-allotment option for an additional 900,000 units could bring total proceeds to $69 million if exercised, providing additional flexibility for target acquisition. The selection of A.G.P./Alliance Global Partners as sole book-runner, supported by The Benchmark Company, suggests a boutique-focused distribution strategy that may target specific investor segments rather than broad institutional placement.

For investors, the separate trading of shares (COLA) and rights (COLAR) post-unit split creates multiple trading opportunities and entry points. However, the relatively modest trust size may limit the scope of potential acquisition targets to smaller private companies, typically in the $200-400 million enterprise value range, considering typical SPAC acquisition multiples.

New York, Jan. 24, 2025 (GLOBE NEWSWIRE) -- Columbus Acquisition Corp (the “Company”), a blank check company incorporated in the Cayman Islands, today announced the closing of its initial public offering of 6,000,000 units at a price of $10.00 per unit for aggregate gross proceeds of $60 million. Each unit consists of one ordinary share and one right to receive one-seventh of one ordinary share upon consummation of an initial business combination.

The units commenced trading on The Nasdaq Global Market (“NASDAQ”) under the ticker symbol “COLAU” on January 23, 2025. Once the securities comprising the units begin separate trading, the ordinary shares and rights will be listed on NASDAQ under the symbols “COLA” and “COLAR,” respectively.

A.G.P./Alliance Global Partners acted as the sole book-running manager for the offering. The Benchmark Company, LLC acted as the co-manager for the offering.

The Company has granted the underwriters a 45-day option to purchase up to 900,000 units at the initial public offering price to cover over-allotments, if any.

Robinson & Cole LLP served as the U.S. counsel to Columbus Acquisition Corp and Sichenzia Ross Ference Carmel LLP served as the U.S. counsel to the representative of the underwriters in this offering.

A registration statement relating to these securities was declared effective by the U.S. Securities and Exchange Commission (the “SEC”) on January 22, 2025. The offering has been made only by means of a prospectus, copies of which may be obtained from A.G.P./Alliance Global Partners, 590 Madison Avenue, 28th Floor, New York, NY 10022, or by telephone at (212) 624-2060, or by email at prospectus@allianceg.com or by visiting EDGAR on the SEC’s website at www.sec.gov.

This press release shall not constitute an offer to sell or the 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. No securities regulatory authority has either approved or disapproved of the contents of this press release.

About Columbus Acquisition Corp

The Company is a blank check company incorporated in the Cayman Islands, sponsored by Hercules Capital Management VII Corp, formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, recapitalization, reorganization or similar business combination with one or more businesses or entities. The Company intends to identify a prospective target business which will not be limited to a particular industry or geographic location.

Forward-Looking Statements

This press release contains statements that constitute “forward-looking statements,” including with respect to the initial public offering, the underwriters’ exercise of over-allotment option, 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 initial public offering 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:

Fen Zhang
Chairman and Chief Executive Officer
Email: eric.zhang@hercules.global
Tel: (+1) 949 899 1827

FAQ

What is the IPO price and total proceeds for Columbus Acquisition Corp (COLAU)?

Columbus Acquisition Corp's IPO price was $10.00 per unit, raising total gross proceeds of $60 million through the sale of 6,000,000 units.

What do COLAU units consist of in the Columbus Acquisition Corp IPO?

Each COLAU unit consists of one ordinary share and one right to receive one-seventh of one ordinary share upon consummation of an initial business combination.

When did Columbus Acquisition Corp (COLAU) begin trading on Nasdaq?

Columbus Acquisition Corp began trading on the Nasdaq Global Market under the symbol COLAU on January 23, 2025.

What are the separate trading symbols for Columbus Acquisition Corp's shares and rights?

The ordinary shares will trade under 'COLA' and the rights under 'COLAR' once they begin separate trading.

What is the over-allotment option granted to COLAU's underwriters?

The underwriters have a 45-day option to purchase up to 900,000 additional units at the IPO price to cover over-allotments.