Hennessy Capital Investment Corp. VII Announces Closing of $190,000,000 Initial Public Offering

Rhea-AI Summary

Hennessy Capital Investment Corp. VII (NASDAQ: HVIIU) has successfully completed its initial public offering (IPO) of 19,000,000 units at $10.00 per unit, raising $190 million in gross proceeds. The offering included 1,500,000 units from the partial exercise of the underwriters' over-allotment option.

Each unit comprises one Class A ordinary share and one right to receive one-twelfth of one Class A ordinary share upon completing an initial business combination. The units began trading on Nasdaq under 'HVIIU' on January 17, 2025, with the Class A shares and rights to later trade separately under 'HVII' and 'HVIIR' respectively.

The SPAC, led by Chairman and CEO Daniel J. Hennessy, aims to focus on merger opportunities in the industrial technology and energy transition sectors. Cohen & Company Capital Markets served as lead book-running manager, with Clear Street and Loop Capital Markets as co-book runners. The entire IPO proceeds of $190 million have been placed in trust.

Positive

• Successful raise of $190 million through IPO
• Full placement of proceeds in trust account
• No warrant dilution in the IPO structure
• Overallotment option partially exercised, indicating strong demand

Negative

• Standard SPAC risks with no identified acquisition target
• Potential 1/12 share dilution upon business combination from rights

Insights

SPAC Financial Analyst

This $190M SPAC IPO represents a notable development in the evolving SPAC market, with several distinctive features worth analyzing. The absence of warrants in the structure is particularly significant - it's a departure from traditional SPAC offerings and suggests a more shareholder-friendly approach by reducing potential dilution. This structure could make the SPAC more attractive for high-quality target companies concerned about post-merger share dilution.

The 1/12 share right structure, while less dilutive than typical warrant offerings, still provides investors with some upside participation. This balanced approach reflects the current market's preference for reduced dilution while maintaining investor incentives.

Hennessy Capital's seventh SPAC launch demonstrates their established track record in the space, with previous deals including Blue Bird and Canoo. Their focus on industrial technology and energy transition sectors is well-timed, given the surge in clean energy investments and industrial automation trends.

The $10 per unit trust account provides standard investor protection, while the successful raise in current market conditions - where SPAC enthusiasm has cooled significantly compared to 2021-2022 - suggests continued institutional confidence in the Hennessy team's ability to execute.

The targeting of industrial technology and energy transition sectors positions this SPAC competitively, as these sectors are experiencing significant innovation and transformation, potentially offering attractive merger candidates seeking public market access.

New York, NY, Jan. 21, 2025 (GLOBE NEWSWIRE) -- Hennessy Capital Investment Corp. VII (NASDAQ: HVIIU) (the “Company”), a special purpose acquisition company, announced today the closing of its initial public offering (“IPO”) of 19,000,000 units, which included 1,500,000 units sold pursuant to the partial exercise of the underwriters’ over-allotment option. The IPO was priced at $10.00 per unit, resulting in gross proceeds of $190,000,000. The units are listed on The Nasdaq Global Market (“Nasdaq”) and commenced trading under the ticker symbol “HVIIU” on January 17, 2025. Each unit consists of one Class A ordinary share and one right to receive one-twelfth (1/12) of one Class A ordinary share upon the consummation of the Company’s initial business combination (“Share Right”). There are no warrants issued publicly or privately in connection with the IPO. Once the securities comprising the units begin separate trading, the Company’s Class A ordinary shares and the Share Rights are expected to be listed on Nasdaq under the symbols “HVII” and “HVIIR,” respectively.

Daniel J. Hennessy, Chairman and CEO, commented “We are pleased to announce the successful completion of our initial public offering and the launch of our seventh flagship SPAC. This milestone positions us as the preferred partner for a category-winning company seeking a NASDAQ listing. We are grateful for the trust of our investors and look forward to delivering long term value to our shareholders.”

The Company is a newly incorporated blank check company founded by Daniel J. Hennessy and formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses or entities. Although the Company reserves the right to pursue an acquisition opportunity in any business or industry, the Company intends to focus its search for a target business in the industrial technology and energy transition sectors.

Cohen & Company Capital Markets, a division of J.V.B. Financial Group, LLC, served as the lead book running manager for the IPO, and Clear Street LLC and Loop Capital Markets LLC served as co-book running managers.

Of the proceeds received upon the consummation of the IPO and simultaneous private placements of units, $190,000,000 (or $10.00 per unit sold in the IPO) was placed in the Company’s trust account. An audited balance sheet of the Company as of January 21, 2025, reflecting receipt of the proceeds upon consummation of the IPO and the private placement, will be included as an exhibit to a Current Report on Form 8-K to be filed by the Company with the U.S. Securities and Exchange Commission (“SEC”).

The IPO was made only by means of a prospectus. Copies of the prospectus relating to the IPO may be obtained from Cohen & Company Capital Markets, 3 Columbus Circle, 24th Floor, New York, NY 10019, Attention: Prospectus Department, or by email at: capitalmarkets@cohencm.com.

A registration statement relating to these securities has been filed with the SEC and was declared effective on January 16, 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 an 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 IPO and search for an initial business combination. No assurance can be given 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 final prospectus for the Company’s IPO filed with 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.

Contact:

Nicholas Geeza
Hennessy Capital Investment Corp. VII
Email: info@hennessycapitalgroup.com
Website: https://www.hennessycapital7.com/

FAQ

How much did Hennessy Capital Investment Corp. VII (HVII) raise in its IPO?

Hennessy Capital Investment Corp. VII raised $190 million in gross proceeds through its IPO of 19,000,000 units priced at $10.00 per unit.

What is the structure of HVII's IPO units?

Each unit consists of one Class A ordinary share and one right to receive one-twelfth of one Class A ordinary share upon the consummation of the initial business combination.

When did HVII units start trading on Nasdaq?

HVII units began trading on Nasdaq under the symbol 'HVIIU' on January 17, 2025.

What sectors is HVII targeting for acquisition?

HVII is focusing its search for acquisition targets in the industrial technology and energy transition sectors.

How much of the IPO proceeds were placed in HVII's trust account?

100% of the IPO proceeds, amounting to $190 million ($10.00 per unit), were placed in the company's trust account.