Pelican Acquisition Corporation Announces Pricing of $75,000,000 Initial Public Offering

Rhea-AI Summary

Pelican Acquisition Corporation (NASDAQ: PELIU) has announced the pricing of its initial public offering (IPO) at $10.00 per unit, aiming to raise $75 million through the sale of 7.5 million units. Each unit comprises one ordinary share and one right, with the right convertible to one-tenth of an ordinary share upon completing an initial business combination.

Trading commenced on May 23, 2025 on the Nasdaq Global Market under "PELIU". The ordinary shares and rights will later trade separately under "PELI" and "PELIR". EarlyBirdCapital serves as the sole book-runner, with IB Capital as co-manager. The underwriters have a 45-day option to purchase up to 1.125 million additional units for over-allotments. The offering is expected to close on May 27, 2025.

Positive

• IPO successfully priced at $75 million, demonstrating market interest
• Trading commenced on major exchange (NASDAQ)
• 45-day over-allotment option could increase total proceeds by $11.25 million
• Structured with rights offering additional value potential for unit holders

Negative

• Blank check company with no existing business operations
• Investment carries inherent risks until successful business combination is identified
• Potential dilution from rights conversion after business combination

Insights

SPAC Financial Analyst

Pelican Acquisition Corporation raised $75M in a blank check IPO, typical SPAC structure with 1/10 share rights instead of traditional warrants.

Pelican Acquisition Corporation has completed pricing for its $75 million SPAC IPO, selling 7.5 million units at $10.00 each. This follows the standard blank check company template with a few notable structural elements. Each unit contains one ordinary share plus one right that converts to 1/10 of a share upon business combination completion - an interesting deviation from the typical warrant structure seen in most SPACs.

The company is incorporated in the Cayman Islands, a common jurisdiction choice for SPACs seeking tax advantages and flexibility for international acquisitions. EarlyBirdCapital is serving as the sole book-runner with IB Capital as co-manager - EarlyBirdCapital has significant experience in the SPAC market.

The underwriters received a standard 45-day overallotment option for an additional 1.125 million units, potentially bringing total proceeds to $86.25 million if fully exercised. Trading has commenced under "PELIU" with plans for the components to eventually trade separately under "PELI" and "PELIR".

This IPO represents a continued, albeit modest, presence of SPACs in the market after their dramatic rise and fall in 2020-2022. The $75 million raise positions this as a smaller SPAC, likely targeting private companies in the lower middle market. The rights structure (versus warrants) may indicate attempts to refine the SPAC model to reduce dilution while still providing upside incentives for early investors.

NEW YORK, May 23, 2025 (GLOBE NEWSWIRE) -- Pelican Acquisition Corporation (NASDAQ: PELIU) (the “Company”), a Cayman Islands exempted company, announced that it priced its initial public offering of 7,500,000 units at $10.00 per unit on May 22, 2025. The units are listed on the Nasdaq Global Market (“NASDAQ”) and trade under the ticker symbol “PELIU” beginning on May 23, 2025. Each unit consists of one ordinary share of the Company and one right, with each right entitling the holder thereof to receive one-tenth (1/10) of one ordinary share upon the consummation of an initial business combination.

Once the securities comprising the units begin separate trading, the ordinary shares and rights are expected to be listed on NASDAQ under the symbols “PELI” and “PELIR”, respectively.

EarlyBirdCapital, Inc. is acting as sole book-running manager while IB Capital LLC is acting as co-manager in the offering and qualified independent underwriter. The underwriters have been granted a 45-day option to purchase up to an additional 1,125,000 units offered by the Company to cover over-allotments, if any. The offering is expected to close on May 27, 2025, subject to customary closing conditions.

A registration statement relating to these securities was declared effective by the Securities and Exchange Commission on May 22, 2025. The offering is being made only by means of a prospectus. Copies of the prospectus may be obtained, when available, by contacting EarlyBirdCapital, Inc., 366 Madison Avenue 8^th floor, New York, NY 10017, Attention: Syndicate Department, or by calling 212-661-0200. Copies of the registration statement can be accessed through the SEC’s website at www.sec.gov.

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 Pelican Acquisition Corporation

Pelican Acquisition Corporation 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’s efforts to identify a prospective target business will not be limited to a particular industry or geographic region.

Forward-Looking Statements

This press release includes forward-looking statements that involve risks and uncertainties. Forward-looking statements are statements that are not historical facts. Such forward-looking statements, including with respect to the initial public offering, are subject to risks and uncertainties, which could cause actual results to differ from the forward-looking statements. No assurance can be given that the initial public offering will be completed on the terms described, or at all, or that the net proceeds of the offering will be used as described in the offering prospectus. The Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.

Contact

Robert Labbe
Chief Executive Officer
Email: admin@pelicanacq.com
Tel: (212) 612-1400

FAQ

What is the IPO price for Pelican Acquisition Corporation (PELI) units?

Pelican Acquisition Corporation's units (PELIU) are priced at $10.00 per unit in its initial public offering.

How much money is PELI raising in its IPO?

PELI is raising $75 million through the sale of 7.5 million units, with potential additional proceeds of $11.25 million if the over-allotment option is exercised.

What do PELI IPO units include?

Each PELI unit consists of one ordinary share and one right, with each right convertible to one-tenth (1/10) of an ordinary share upon completing a business combination.

What are the trading symbols for Pelican Acquisition Corporation?

The units currently trade as 'PELIU' on NASDAQ. The ordinary shares and rights will later trade separately under 'PELI' and 'PELIR' respectively.

When is PELI's IPO expected to close?

Pelican Acquisition Corporation's IPO is expected to close on May 27, 2025, subject to customary closing conditions.