NewHold Investment Corp III Announces Closing of $201,250,000 Initial Public Offering, Including Full Exercise of Underwriters' Over-Allotment Option

Rhea-AI Summary

NewHold Investment Corp III has successfully completed its initial public offering (IPO), raising $201,250,000 through the sale of 20,125,000 units at $10.00 per unit. The offering includes the full exercise of the underwriters' over-allotment option for an additional 2,625,000 units.

Each unit comprises one Class A ordinary share and one-half of one redeemable warrant. Whole warrants become exercisable 30 days after the initial business combination, allowing holders to purchase one Class A ordinary share at $11.50 per share. The units trade on Nasdaq under 'NHICU', with Class A shares and warrants expected to trade separately under 'NHIC' and 'NHICW' respectively.

BTIG, served as the sole book-running manager for the offering. The company plans to use the proceeds from both the IPO and simultaneous private placement for its initial business combination.

Positive

• Full exercise of over-allotment option indicates strong investor demand
• Substantial capital raise of $201.25M provides significant acquisition funding
• Listing on major exchange (Nasdaq) increases visibility and liquidity

Negative

• No specific business combination target identified yet
• Warrant exercise could cause future dilution at $11.50 per share
• SPAC structure carries inherent uncertainty until business combination completion

Insights

Financial Analyst

NewHold Investment Corp III's successful $201,250,000 IPO represents a substantial capital formation event in the SPAC market. The full exercise of the underwriters' over-allotment option (2,625,000 additional units) suggests strong initial investor interest in this offering.

The standard SPAC unit structure - one Class A ordinary share plus one-half warrant exercisable at $11.50 - aligns with market expectations, though investors should note that only whole warrants will trade and become exercisable 30 days post-business combination. The $10.00 unit price creates a clear baseline for evaluating future developments.

As a blank check company, NHIC now has substantial capital to pursue acquisition opportunities, though the announcement doesn't specify targeted industries or sectors. The company's Cayman Islands domicile may provide certain structural advantages for international transactions.

For investors considering this SPAC, several phases are worth monitoring: the separation of units into individual shares and warrants (expected soon under symbols NHIC and NHICW), the announcement of a potential acquisition target, and ultimately the business combination closure. Each stage presents different risk-reward profiles.

With BTIG serving as sole book-running manager, this SPAC has established mainstream financial backing. However, as with all SPACs, the ultimate investment thesis hinges entirely on the quality of the eventual business combination target, which remains unknown at this stage.

Capital Markets Strategist

This $201.25 million SPAC IPO demonstrates continuing capital market appetite for special purpose acquisition vehicles despite the evolution of the SPAC landscape. The full exercise of the over-allotment option is particularly significant, as it indicates strong institutional demand during the book-building process.

The trading structure follows the standard SPAC mechanics: units (NHICU) will eventually separate into common shares (NHIC) and warrants (NHICW), creating distinct investment instruments with different risk-reward characteristics. This separation typically occurs 52 days after the IPO, though exact timing isn't specified in this announcement.

Beyond the mechanics, NewHold III's successful raise provides the SPAC with sufficient capital to target mid-market companies typically valued between $500 million and $1.5 billion. The "III" designation indicates this is the third SPAC from the NewHold team, suggesting experienced sponsors with established deal-sourcing networks.

For investors, the key consideration is opportunity cost during the search period. With no interest earned on common shares held through trust (unlike earlier SPAC structures), the investment remains essentially dormant until a target is announced. The warrants, however, provide leveraged upside exposure with zero downside until a deal materializes.

This successfully completed raise provides investors another potential vehicle to access private companies transitioning to public markets, though with the inherent uncertainty that defines all pre-combination SPACs.

New York, New York, March 03, 2025 (GLOBE NEWSWIRE) -- NewHold Investment Corp III (the “Company”), a newly organized special purpose acquisition company formed as a Cayman Islands exempted company, today announced the closing of its initial public offering of 20,125,000 units at an offering price of $10.00 per unit. This includes the exercise in full by the underwriters of their over-allotment option to purchase up to an additional 2,625,000 units. Each unit consists of one Class A ordinary share and one-half of one redeemable warrant. Each whole warrant, which becomes exercisable 30 days after the completion of the Company’s initial business combination, will entitle the holder thereof to purchase one Class A ordinary share at $11.50 per share. The units are listed on the Nasdaq Stock Market LLC (“Nasdaq”) under the ticker symbol “NHICU”. No fractional warrants will be issued upon separation of the units and only whole warrants will trade. Once the securities comprising the units begin separate trading, the Class A ordinary shares and the warrants are expected to be traded on Nasdaq under the symbols “NHIC” and “NHICW,” respectively. 

The Company intends to use the net proceeds from the offering, and the simultaneous private placement of units, to consummate the Company's initial business combination.

BTIG, LLC acted as sole book-running manager for the offering.

The offering was made only by means of a prospectus. Copies of the prospectus may be obtained from: BTIG, LLC, 65 East 55th Street New York, New York 10022, or by email at ProspectusDelivery@btig.com, or by accessing the SEC’s website at www.sec.gov.

A registration statement relating to the securities has been filed with, and declared effective by, the Securities and Exchange Commission (“SEC”). This press release shall not constitute an offer to sell or a 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.

About NewHold Investment Corp III

NewHold Investment Corp III is a blank check company, also commonly referred to as a special purpose acquisition company, or SPAC, formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses. While the Company may pursue a business combination in any sector, the Company will primarily focus on growing industrial and business services companies. The Company is led by an experienced management team with Kevin Charlton as Chief Executive Officer, Samy Hammad as President and Chief Operating Officer and Polly Schneck as Chief Financial Officer. For more information visit https://nhicspac.com.

Forward-Looking Statements

This press release contains statements that constitute “forward-looking statements,” including with respect to the Company’s initial public offering (“IPO”), 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 NewHold Investment Corp III, including those set forth in the Risk Factors section of NewHold Investment Corp III’s registration statement and prospectus for the IPO filed with the SEC. Copies are available on the SEC's website, www.sec.gov. NewHold Investment Corp III undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.

Contacts:

Polly Schneck
Chief Financial Officer
pschneck@newholdllc.com

Investor & Media Contact:

Amanda Tarplin
amanda@tarplinconsulting.com

FAQ

What is the total amount raised in NewHold Investment Corp III's IPO (NHIC)?

NewHold Investment Corp III raised $201,250,000 through its IPO, selling 20,125,000 units at $10.00 per unit.

What do NHIC IPO units include and how are they structured?

Each NHIC unit consists of one Class A ordinary share and one-half of one redeemable warrant, with whole warrants exercisable at $11.50 per share.

When can NHIC warrant holders exercise their warrants?

Warrant holders can exercise their warrants 30 days after the completion of the company's initial business combination.

What are the trading symbols for NewHold Investment Corp III's securities?

The units trade as 'NHICU', with Class A shares and warrants to trade as 'NHIC' and 'NHICW' respectively on Nasdaq.

How many additional units were sold through the over-allotment option for NHIC?

The underwriters exercised their full over-allotment option to purchase an additional 2,625,000 units.