Cal Redwood Acquisition Corp. Announces Pricing of $200 Million Initial Public Offering

Rhea-AI Summary

Cal Redwood Acquisition Corp. has announced the pricing of its $200 million initial public offering, consisting of 20,000,000 units at $10.00 per unit. The units will trade on the Nasdaq Global Market under "CRAQU" starting May 23, 2025. Each unit includes one Class A ordinary share and one right to receive one-tenth of a Class A ordinary share upon business combination completion.

The SPAC will focus on merger opportunities in the technology, media and telecommunications (TMT) sector and sectors undergoing technology disruption. Cohen & Company Capital Markets leads the offering as book-running manager, with Seaport Global Securities as joint book-runner. The underwriters have a 45-day option to purchase up to 3,000,000 additional units to cover over-allotments.

Positive

• Substantial IPO size of $200 million indicates strong initial capitalization
• Focus on high-growth TMT sector and technology disruption opportunities
• Listing on major exchange (Nasdaq Global Market) provides good liquidity
• Additional potential capital through 3,000,000 unit over-allotment option

Negative

• No specific target business identified yet
• SPAC structure carries inherent risks of not finding suitable merger target
• Potential shareholder dilution through rights conversion
• Limited time to complete business combination before potential liquidation

Insights

Financial Analyst

Cal Redwood launches $200M SPAC IPO targeting TMT sector, creating new blank-check investment vehicle with standard SPAC structure.

Cal Redwood Acquisition Corp. has priced its IPO at $200 million, offering 20 million units at $10.00 each. This SPAC (Special Purpose Acquisition Company) represents a typical blank-check structure where investors fund a shell company that will later seek to acquire or merge with an operating business.

Each unit comprises one Class A ordinary share plus one right to receive one-tenth of a share upon completing a business combination. The units will trade under "CRAQU" on Nasdaq, with shares and rights eventually trading separately as "CRA" and "CRAQR."

The SPAC includes a standard 45-day over-allotment option for underwriters to purchase up to 3 million additional units, potentially increasing the total raise to $230 million. Cohen & Company Capital Markets leads the offering with Seaport Global Securities as joint book-runner.

Cal Redwood's management indicates they'll target technology, media and telecommunications (TMT) sectors or businesses undergoing technology disruption. This SPAC joins hundreds of others still seeking acquisition targets in a competitive market where many SPACs have struggled to complete deals before their typical 18-24 month deadlines.

The $10.00 unit price follows standard SPAC convention, with the offering expected to close May 27. The structure with rights (rather than warrants) represents a slightly different approach than many SPACs, potentially offering less dilution for long-term shareholders but also potentially less upside for speculative traders.

Menlo Park, CA, May 22, 2025 (GLOBE NEWSWIRE) -- Cal Redwood Acquisition Corp. (the “Company”) announced the pricing of its initial public offering of 20,000,000 units at a price of $10.00 per unit on May 22, 2025. The units are expected to be listed for trading on the Nasdaq Global Market under the ticker symbol “CRAQU” beginning May 23, 2025. Each unit consists of one Class A ordinary share and one right to receive one tenth of a Class A ordinary share upon the consummation of an initial business combination. Once the securities comprising the units begin separate trading, the Company expects that its Class A ordinary shares and rights will be listed on the Nasdaq Global Market under the symbols “CRA” and “CRAQR,” respectively. The offering is expected to close on May 27, 2025, subject to customary closing conditions.

The Company was formed for the purpose of effecting a merger, amalgamation, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses. The Company may pursue an initial business combination opportunity in any industry or sector but expects to focus its efforts on businesses in the technology, media and telecommunications (TMT) sector as well as sectors that are being transformed via technology disruption, where the Company believes its management team’s operational and investment expertise will provide it with a competitive advantage.

Cohen & Company Capital Markets, a division of J.V.B. Financial Group, LLC, is acting as lead book-running manager, and Seaport Global Securities is acting as joint book-runner. The Company has granted the underwriters a 45-day option to purchase up to 3,000,000 additional units at the initial public offering price to cover over-allotments, if any.

The public offering is being made only by means of a prospectus. When available, copies of the prospectus relating to the offering may be obtained from Cohen & Company Capital Markets, 3 Columbus Circle, 24^th Floor, New York, NY 10019, Attention: Prospectus Department, or by email at: capitalmarkets@cohencm.com.

A registration statement relating to the securities became effective on May 22, 2025. 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.

Forward-Looking Statements

This press release contains statements that constitute “forward-looking statements,” including with respect to the proposed initial public offering and the anticipated use of the net proceeds from the offering. No assurance can be given that the offering discussed above will be completed on the terms described, or at all, or that the Company will ultimately complete a business combination transaction. 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 preliminary prospectus for the Company’s offering filed with the U.S. Securities and Exchange Commission (the “SEC”). Copies of these documents are available on the SEC’s website, at 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.

Media Contact

Raymond Dong
Cal Redwood Acquisition Corp. 
Email: raymond@bowcapital.com 

FAQ

What is the IPO price and size for Cal Redwood Acquisition Corp. (CRA)?

Cal Redwood Acquisition Corp.'s IPO consists of 20,000,000 units priced at $10.00 per unit, totaling $200 million.

When will CRA stock begin trading on Nasdaq?

The units will begin trading on Nasdaq Global Market under symbol 'CRAQU' on May 23, 2025. The Class A shares and rights will later trade separately under 'CRA' and 'CRAQR' respectively.

What sectors is Cal Redwood Acquisition Corp. targeting for merger?

The SPAC is focusing on businesses in the technology, media and telecommunications (TMT) sector and sectors being transformed by technology disruption.

What does each Cal Redwood Acquisition Corp. unit consist of?

Each unit consists of one Class A ordinary share and one right to receive one-tenth of a Class A ordinary share upon completion of a business combination.

Who are the underwriters for the Cal Redwood Acquisition Corp. IPO?

Cohen & Company Capital Markets is the lead book-running manager, and Seaport Global Securities is acting as joint book-runner.