Legato Merger Corp. IV Announces Pricing of $200,000,000 Initial Public Offering

Rhea-AI Summary

Legato Merger Corp. IV (NYSE:LEGOU) priced an initial public offering of 20,000,000 units at $10.00 per unit, representing gross proceeds of $200,000,000. Units will begin trading on NYSE American as LEGO U on January 23, 2026. Each unit consists of one ordinary share and one-third of one redeemable warrant; each whole warrant allows purchase of one ordinary share at $11.50, subject to adjustment. Ordinary shares and warrants are expected to trade separately as LEGO and LEGO WS once split. BTIG is sole book-running manager. The company granted a 45-day option for 3,000,000 additional units. A registration statement filed with the SEC was declared effective on January 22, 2026.

Positive

• Gross proceeds of $200,000,000 from 20,000,000 units
• 45-day overallotment option for 3,000,000 additional units (15%)
• Listing on NYSE American under ticker LEGO U starting Jan 23, 2026
• BTIG serving as sole book-running manager

Negative

• Each unit includes warrants that may dilute equity upon exercise
• Company is a blank-check vehicle with broad industry focus, increasing deal uncertainty

Key Figures

IPO size: $200,000,000 Units offered: 20,000,000 units Unit price: $10.00 per unit +5 more

8 metrics

IPO size $200,000,000 Initial public offering announced Jan 22, 2026

Units offered 20,000,000 units Initial public offering

Unit price $10.00 per unit Initial public offering pricing

Warrant exercise price $11.50 per share Each whole redeemable warrant

Over-allotment option period 45 days Underwriters’ option to purchase additional units

Over-allotment units 3,000,000 units Additional units to cover over-allotments

Unit listing date January 23, 2026 NYSE American listing for units under ticker “LEGO U”

SEC effectiveness date January 22, 2026 Registration statement declared effective by SEC

Market Reality Check

Vol: Volume 0 vs 20-day averag...

normal vol

Volume Volume 0 vs 20-day average 2,613 ahead of the IPO pricing. normal

Market Pulse Summary

This announcement details the structure of Legato Merger Corp. IV’s IPO, including 20,000,000 units ...

Analysis

This announcement details the structure of Legato Merger Corp. IV’s IPO, including 20,000,000 units at $10.00 each, warrants exercisable at $11.50, and a total offering size of $200,000,000. The effective SEC registration on January 22, 2026 and NYSE American listing plans frame the regulatory backdrop. Investors may watch for the exercise of the 45-day over-allotment option and subsequent identification of a business combination target.

Key Terms

initial public offering, redeemable warrant, prospectus, registration statement, +3 more

7 terms

initial public offering financial

"announced today that it priced its initial public offering of 20,000,000 units"

An initial public offering (IPO) is when a private company first sells its shares to the public and becomes a stock-listed company. It matters because it allows the company to raise money from a wide range of investors, helping it grow, while giving early shareholders a way to sell some of their ownership.

redeemable warrant financial

"and one-third of one redeemable warrant, each whole warrant entitling"

A redeemable warrant is a financial tool that gives its holder the right to buy shares of a company at a fixed price within a certain period. If the holder chooses to do so, the company can buy back or cancel the warrant before it expires, often to encourage investment or manage share issuance. For investors, it provides an option to potentially buy shares at a favorable price while offering some flexibility for the issuing company.

prospectus regulatory

"The offering is being made only by means of a prospectus."

A prospectus is a detailed document that explains a company's plans for offering new shares or investments to the public. It’s important because it provides potential investors with key information about the company’s business, risks, and how they might make money, helping them decide whether to invest. Think of it as a guidebook for understanding what you're buying into.

registration statement regulatory

"A registration statement relating to these securities has been filed"

A registration statement is a formal document that companies file with a government agency to offer new shares of stock to the public. It provides essential information about the company's finances, operations, and risks, helping investors make informed decisions. Think of it as a detailed product description that ensures transparency and trust before buying into a company.

Securities and Exchange Commission regulatory

"with the Securities and Exchange Commission (“SEC”) and was declared effective"

A national government agency that enforces rules for buying, selling and disclosing information about stocks and other investments, acting like a referee and scorekeeper for financial markets. It requires companies to share clear, regular financial and business information and investigates fraud or rule-breaking, which matters to investors because those rules and disclosures help ensure fair prices, reduce hidden risks and make it easier to compare investment choices.

over-allotments financial

"option to purchase up to an additional 3,000,000 units ... to cover over-allotments"

An over-allotment is a temporary extra batch of shares that the underwriters of a stock offering are allowed to sell beyond the original amount, with the right to buy those shares back later. Think of it as spare tickets sold to meet demand and then reclaimed if needed to keep the market orderly; it helps stabilize the stock price after an offering and can affect short-term supply and potential dilution, which matters to investors tracking price and ownership stakes.

book-running manager financial

"BTIG, LLC is acting as the sole book-running manager for the offering."

A book-running manager is the lead organizer responsible for coordinating a large financial sale, such as issuing new stocks or bonds. They oversee preparing all necessary documents, setting the sale’s price, and finding buyers, much like a concert promoter arranging a major event. Their role matters to investors because they help ensure the offering is successfully sold at the best possible terms.

AI-generated analysis. Not financial advice.

NEW YORK, Jan. 22, 2026 (GLOBE NEWSWIRE) -- Legato Merger Corp. IV (the “Company”) announced today that it priced its initial public offering of 20,000,000 units at $10.00 per unit. The units will be listed on the NYSE American Market (“NYSE American”) and will begin trading under the ticker symbol “LEGO U” on January 23, 2026. Each unit consists of one ordinary share and one-third of one redeemable warrant, each whole warrant entitling the holder thereof to purchase one ordinary share at a price of $11.50 per share, subject to adjustment. Only whole warrants are exercisable and will trade. Once the securities comprising the units begin separate trading, the ordinary shares and redeemable warrants are expected to be listed on NYSE American under the symbols “LEGO” and “LEGO WS,” respectively. 

Legato Merger Corp. IV is a Cayman Islands exempted company incorporated for the purpose of entering into a merger, share exchange, asset acquisition, share purchase, recapitalization, reorganization or similar business combination with one or more businesses or entities. The Company’s efforts to identify a prospective target business will not be limited to a particular industry or geographic region although the Company intends to initially focus on target businesses in the infrastructure, industrial, artificial intelligence, and technology industries.

BTIG, LLC is acting as the sole book-running manager for the offering. The Company has granted the underwriters a 45-day option to purchase up to an additional 3,000,000 units at the initial public offering price to cover over-allotments, if any.

The offering is being made only by means of a prospectus. Copies of the prospectus may be obtained, when available, from BTIG, LLC, 65 East 55th Street New York, New York 10022, Attn: Syndicate Department, (212) 593 7555.

A registration statement relating to these securities has been filed with the Securities and Exchange Commission (“SEC”) and was declared effective on January 22, 2026. 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 proposed initial public offering and the anticipated use of net proceeds. No assurance can be given that the offering discussed above will be completed on the terms described, or at all, or that the net proceeds of the offering will be used as indicated in the offering prospectus. 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 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:
Gregory Monahan
Chief Executive Officer
Legato Merger Corp. IV
Email: gmonahan@crescendopartners.com

FAQ

What did Legato Merger Corp. IV (LEGOU) price its IPO at and how many units were offered?

Legato Merger Corp. IV priced 20,000,000 units at $10.00 per unit, totaling $200,000,000 in gross proceeds.

When will LEGOU begin trading on NYSE American and under what ticker?

Units will begin trading on January 23, 2026 on NYSE American under the ticker LEGO U.

What does each LEGOU unit include and what are the warrant terms?

Each unit contains one ordinary share and one-third of one redeemable warrant; each whole warrant is exercisable at $11.50 per share, subject to adjustment.

Will Legato Merger Corp. IV issue additional units beyond the initial 20,000,000?

Yes; the underwriters have a 45-day option to purchase up to 3,000,000 additional units to cover over-allotments.

What future tickers will the ordinary shares and warrants trade under once separated?

Once separated, ordinary shares are expected to trade as LEGO and redeemable warrants as LEGO WS on NYSE American.