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Graf Global Corp. Announces Closing of $230 Million Initial Public Offering Including Full Exercise of Underwriters’ Over-Allotment Option

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Graf Global Corp. announced the successful closing of its $230 million IPO, including the full exercise of the underwriters' over-allotment option. The offering comprised 23,000,000 units at $10.00 each, leading to gross proceeds of $230 million. Each unit includes one Class A ordinary share and one-half of a redeemable warrant, listed on NYSE American under the ticker 'GRAF.U'. Once separated, shares and warrants will trade as 'GRAF' and 'GRAF WS'. Proceeds are placed in a trust for future business combinations. James Graf leads the company as CEO, CFO, and Director. Cantor Fitzgerald & Co. managed the offering.

Positive
  • Successfully raised $230 million through IPO.
  • Full exercise of underwriters' over-allotment option.
  • Proceeds secured in trust for future business combinations.
Negative
  • Potential dilution for existing shareholders due to new shares and warrants.

The successful closing of Graf Global Corp.'s initial public offering (IPO), with gross proceeds of $230 million, marks a significant milestone for the company. The full exercise of the underwriters' over-allotment option indicates strong investor confidence in the company's potential.

For retail investors, it's important to understand that Graf Global Corp. is a blank check company, often referred to as a SPAC (Special Purpose Acquisition Company). SPACs raise capital through IPOs to acquire or merge with existing companies. This type of investment carries unique risks and rewards—there’s often no immediate operational business and success depends on the company's ability to identify and execute a profitable acquisition.

Given the units are set at $10 each and each unit includes one Class A ordinary share and one-half of a redeemable warrant exercisable at $11.50 per share, investors should consider the potential dilution and the implied premium on the warrants. The funds being placed in trust provides some security that the capital is reserved for future acquisitions, helping mitigate risk until an acquisition is identified.

The role of key management, especially James Graf, who has a significant reputation and experience, plays a critical role here. Investors should track his future decisions closely.

This IPO highlights the continuing popularity of SPACs as a vehicle for companies to go public. For retail investors, the key is to watch the broader market sentiment towards SPACs as this can significantly impact stock performance. The trust placement of $230 million ensures that the funds are secured until they are allocated towards an acquisition, potentially reducing the investment risk.

However, retail investors should be cautious of the time-bound nature of SPACs; if Graf Global Corp. fails to find a suitable acquisition within the designated timeframe, the capital must be returned to investors, typically with minor interest, resulting in an opportunity cost.

The involvement of Cantor Fitzgerald as the sole book-running manager is a positive signal given their strong track record in managing IPOs successfully. Investors should consider the secondary trading of the units and the separate trading of shares and warrants as these events can offer further investment opportunities or liquidity.

THE WOODLANDS, TX, June 27, 2024 (GLOBE NEWSWIRE) -- Graf Global Corp. (the “Company”) today announced the closing of its initial public offering of 23,000,000 units, which includes 3,000,000 units issued pursuant to the exercise by the underwriters of their over-allotment option in full. The offering was priced at $10.00 per unit, resulting in gross proceeds of $230,000,000.

The units are listed on the NYSE American LLC (“NYSE”) and commenced trading under the ticker symbol “GRAF.U” on June 26, 2024. Each unit consists of one Class A ordinary share and one-half of one redeemable warrant, with each whole warrant exercisable to purchase one Class A ordinary share at a price of $11.50 per share. Only whole warrants will be exercisable. Once the securities comprising the units begin separate trading, the Class A ordinary shares and warrants are expected to be listed on NYSE under the symbols “GRAF” and “GRAF WS,” respectively. Of the proceeds received from the consummation of the initial public offering and a simultaneous private placement of warrants (as well as the exercise of the over-allotment option), $230,000,000 (or $10 per unit sold in the public offering) was placed in trust.

Graf Global Corp. is a blank check company formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses. The Company intends to capitalize on the significant experience and relationships of its Chief Executive Officer, Chief Financial Officer and Director, James Graf, but may pursue an initial business combination in any industry or geographic region.

Cantor Fitzgerald & Co. acted as the sole book-running manager of the offering.

A registration statement relating to these securities was declared effective by the U.S. Securities and Exchange Commission (the “SEC”) on June 25, 2024. 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.

The offering is being made only by means of a prospectus. Copies of the prospectus relating to the offering may be obtained from Cantor Fitzgerald & Co., Attention: Capital Markets, 499 Park Avenue, 5th Floor New York, New York 10022, or by email at prospectus@cantor.com.

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. 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 for the Company’s 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.

CONTACT

James Graf
Chief Executive Officer, Chief Financial Officer and Director
Graf Global Corp.

james@grafspac.com



FAQ

What is the total amount raised in Graf Global Corp's IPO?

Graf Global Corp raised $230 million in its IPO.

What does each unit of Graf Global Corp's IPO consist of?

Each unit consists of one Class A ordinary share and one-half of a redeemable warrant.

What is the ticker symbol for Graf Global Corp's units on NYSE?

The ticker symbol for the units is 'GRAF.U'.

What are the ticker symbols for Graf Global Corp's shares and warrants once they start trading separately?

The shares will trade under 'GRAF' and the warrants under 'GRAF WS'.

How will the proceeds from Graf Global Corp's IPO be used?

The proceeds will be placed in a trust for future business combinations.

Who managed Graf Global Corp's initial public offering?

Cantor Fitzgerald & Co. acted as the sole book-running manager.

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