Real Asset Acquisition Corp. Announces Closing of $172.5 Million Initial Public Offering Including Full Exercise of Underwriters’ Over-Allotment Option

Rhea-AI Summary

Real Asset Acquisition Corp has successfully completed its IPO, raising $172.5 million by offering 17.25 million units at $10.00 each on Nasdaq. Each unit includes one Class A ordinary share and half a redeemable warrant, with whole warrants exercisable at $11.50 per share.

The company trades under "RAAQU" and will later split into "RAAQ" for shares and "RAAQW" for warrants. A concurrent private placement of 5.45 million warrants at $1.00 each generated additional proceeds of $5.45 million.

As a blank check company, Real Asset Acquisition aims to pursue business combinations in quantum computing, metals/mining, rare earth, and infrastructure sectors. Cohen & Company Capital Markets led the offering, with Clear Street as joint book-runner. $172.5 million has been placed in trust, representing $10.00 per public unit.

Positive

• Successfully raised $172.5M through IPO at $10 per unit
• Full exercise of underwriters' over-allotment option for 2.25M additional units
• Additional $5.45M raised through private placement of warrants
• Trading commenced on Nasdaq Global Market
• Targeting high-growth sectors: quantum computing, metals/mining, rare earth, and infrastructure

Negative

• No specific target company identified yet for business combination
• Blank check company with no operating history
• Investment risk as success depends entirely on future business combination
• Potential dilution from warrant exercises at $11.50 per share

Insights

Financial Analyst

Real Asset Acquisition Corp. completes $172.5M SPAC IPO targeting quantum computing and rare earth sectors; standard structure with 100% funds in trust.

Real Asset Acquisition Corp. has successfully completed its $172.5 million SPAC IPO, including the full exercise of the underwriters' over-allotment option. This signals strong initial demand for this blank check company. Each unit priced at $10.00 consists of one Class A ordinary share and half a warrant exercisable at $11.50.

The company also secured an additional $5.45 million through a private placement of warrants at $1.00 each. What's particularly noteworthy is that 100% of the IPO proceeds have been placed in trust while management searches for acquisition targets - providing full principal protection for initial investors.

The SPAC's targeting of quantum computing, metals/mining, rare earth elements, and infrastructure sectors aligns with growing market interest in critical technologies and strategic resources. These sectors represent high-growth potential areas with significant national security implications.

With this capital structure now in place, Real Asset Acquisition Corp. enters the standard SPAC timeline to identify and complete a business combination. The involvement of established financial institutions like Cohen & Company Capital Markets lends institutional credibility to this offering, though investors should recognize the SPAC still faces the typical challenges of identifying suitable acquisition targets in competitive sectors.

PRINCETON, NEW JERSEY, April 30, 2025 (GLOBE NEWSWIRE) -- Real Asset Acquisition Corp. (Nasdaq: RAAQ) (the “Company”) today announced the closing of its initial public offering of 17,250,000 units, which includes 2,250,000 units issued pursuant to the exercise by the underwriters of their over-allotment option in full, at a public offering price of $10.00 per unit. 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.

The units are listed on The Nasdaq Global Market (“Nasdaq”) and commenced trading under the ticker symbol “RAAQU” on April 29, 2025. Once the securities comprising the units begin separate trading, the Class A ordinary shares and warrants are expected to be listed on Nasdaq under the symbols “RAAQ” and “RAAQW,” respectively.

Concurrently with the closing of the initial public offering, the Company closed on a private placement of 5,450,000 warrants at a price of $1.00 per warrant, resulting in gross proceeds of $5,450,000. RAAQ Sponsor LLC, the Company’s sponsor, purchased 3,725,000 of the private placement warrants, Cohen & Company Capital Markets purchased 1,466,250 of the private placement warrants and Clear Street purchased 258,750 private placement warrants. Each private placement warrant is exercisable to purchase one Class A ordinary share at $11.50 per share. Of the proceeds received from the consummation of the initial public offering and a simultaneous private placement of warrants, $172,500,000 (or $10.00 per unit sold in the public offering) was placed in trust.

Real Asset Acquisition Corp. is a blank check company formed for the purpose of effecting a merger, amalgamation, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses. While the Company may pursue an initial business combination in any industry, sector or geographic region, it intends to target opportunities and companies that are in the quantum computing, metals/mining, rare earth and infrastructure sectors.

Cohen & Company Capital Markets, a division of J.V.B. Financial Group, LLC, acted as the lead book-running manager of the offering. Clear Street LLC acted as the joint book-runner of the offering.

A registration statement relating to these securities was declared effective by the U.S. Securities and Exchange Commission (the “SEC”) on April 28, 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 offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

The offering was made only by means of a prospectus. Copies of the prospectus relating to this offering 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.

Cautionary Note Concerning Forward-Looking Statements

This press release contains statements that constitute “forward-looking statements,” including with respect to the Company’s search for an initial business combination and the anticipated use of the net proceeds of the initial public offering and simultaneous private placement. 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 initial public 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

Peter Ort
Principal Executive Officer and Co-Chairman
Real Asset Acquisition Corp.
pete@curaleaassociates.com 

FAQ

How much did Real Asset Acquisition Corp (RAAQU) raise in its IPO on April 29, 2025?

Real Asset Acquisition Corp raised $172.5 million in its IPO, selling 17,250,000 units at $10.00 per unit, including the full exercise of the underwriters' over-allotment option of 2,250,000 units.

What do RAAQU units include in the April 2025 IPO offering?

Each RAAQU unit consists of one Class A ordinary share and one-half of one redeemable warrant. Each whole warrant can be exercised to purchase one Class A ordinary share at $11.50 per share.

What sectors will Real Asset Acquisition Corp (RAAQU) target for business combinations?

Real Asset Acquisition Corp will target opportunities and companies in quantum computing, metals/mining, rare earth, and infrastructure sectors.

How many private placement warrants were sold alongside RAAQU's IPO?

A total of 5,450,000 private placement warrants were sold at $1.00 per warrant, generating $5,450,000 in gross proceeds. RAAQ Sponsor LLC purchased 3,725,000 warrants, Cohen & Company Capital Markets bought 1,466,250, and Clear Street acquired 258,750 warrants.

What happens to RAAQU's trading symbols after units begin separate trading?

After separate trading begins, the Class A ordinary shares will trade under 'RAAQ' and the warrants under 'RAAQW' on the Nasdaq Global Market.

How much of RAAQU's IPO proceeds were placed in trust?

$172,500,000 ($10.00 per unit) from the IPO and private placement proceeds were placed in trust.