Rising Dragon Acquisition Corp. Announces Closing of $57.5 Million Initial Public Offering

Rhea-AI Summary

Rising Dragon Acquisition Corp. (NASDAQ: RDAC) has successfully closed its initial public offering (IPO) of 5,750,000 units at $10.00 per unit, raising a total of $57.5 million. The offering included the full exercise of the underwriters' over-allotment option for an additional 750,000 units. Each unit comprises one ordinary share and one right, with the right entitling the holder to receive one-tenth of an ordinary share upon the consummation of an initial business combination.

The units began trading on the NASDAQ Capital Market under the ticker symbol RDACU on October 11, 2024. Once the securities start separate trading, the ordinary shares and rights are expected to be listed under the symbols RDAC and RDACR, respectively. Lucid Capital Markets acted as the sole book-running manager for the offering.

The company's registration statement became effective on October 10, 2024, and a final prospectus has been filed with the SEC. The offering was made only through a prospectus forming part of the effective registration statement.

Positive

• Successfully raised $57.5 million through IPO
• Full exercise of underwriters' over-allotment option
• Units listed on NASDAQ Capital Market
• Potential for additional capital through rights offering

Negative

• None.

Insights

Financial Analyst

The successful IPO of Rising Dragon Acquisition Corp. (RDAC) is a significant event in the SPAC market. The company raised $57.5 million by offering 5,750,000 units at $10 each, including the full exercise of the over-allotment option. This demonstrates strong investor interest and confidence in the SPAC's potential.

The unit structure, consisting of one ordinary share and one right (convertible to 1/10 of a share upon business combination), is typical for SPACs. It provides an additional incentive for investors to hold through the acquisition phase. The listing on NASDAQ under "RDACU" gives the SPAC visibility and liquidity, which are important for attracting potential merger targets.

For investors, this IPO presents an opportunity to participate in a potential high-growth acquisition, particularly in the Chinese market. However, it's important to note that SPACs carry inherent risks, including the uncertainty of finding a suitable target within the typical 18-24 month timeframe. The involvement of reputable firms like Lucid Capital Markets and Loeb & Loeb LLP adds credibility to the offering, but investors should still approach with caution and conduct thorough due diligence.

Legal Expert

The successful registration and IPO of Rising Dragon Acquisition Corp. highlight several key legal aspects. The SEC's approval of the S-1 registration statement (File No. 333-280026) on October 10, 2024, indicates compliance with federal securities regulations. This is important for investor protection and market integrity.

The involvement of multiple law firms - Loeb & Loeb LLP for the company, Blank Rome LLP for the underwriter and Maples & Calder for Cayman Islands legal matters - suggests a comprehensive approach to legal compliance across different jurisdictions. This is particularly important given the company's Chinese connection and Cayman Islands incorporation.

The press release's disclaimer about not constituting an offer to sell or solicitation to buy is a standard legal protection. It emphasizes that the offering is made solely through the prospectus, reducing potential liability. Investors should note that while these legal structures provide some safeguards, they do not guarantee the SPAC's success or protect against all investment risks.

SHANXI, CHINA, Oct. 15, 2024 (GLOBE NEWSWIRE) -- Rising Dragon Acquisition Corp. (NASDAQ: RDAC) (the “Company”) announced today that it closed its initial public offering of 5,750,000 units at $10.00 per unit, including the full exercise of the underwriters’ option to purchase up to an additional 750,000 units to cover over-allotments. Each unit consists of one ordinary share and one right. Each right entitles the holder thereof to receive one-tenth (1/10) of one ordinary share upon the consummation of an initial business combination.

The units are listed on the NASDAQ Capital Market (“NASDAQ”) and began trading under the ticker symbol “RDACU” on October 11, 2024. Once the securities comprising the units begin separate trading, the ordinary shares and rights are expected to be listed on NASDAQ under the symbols “RDAC” and “RDACR,” respectively.

Lucid Capital Markets acted as sole book running manager in the offering. Loeb & Loeb LLP is serving as legal counsel to the Company. Blank Rome LLP is serving as legal counsel to Lucid Capital Markets. Maples & Calder (Hong Kong) LLP is serving as Cayman Islands legal counsel to the Company.

A registration statement on Form S-1, as amended (File No. 333-280026), relating to these securities was filed with the Securities and Exchange Commission (“SEC”) and became effective on October 10, 2024. A final prospectus relating to the offering was filed with the SEC and is available on the SEC's website at http://www.sec.gov. The offering was made only by means of a prospectus forming part of the effective registration statement. Electronic copies of the prospectus relating to this offering may be obtained from Lucid Capital Markets, 570 Lexington Avenue, 40th Floor, New York, NY 10022.

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 Rising Dragon Acquisition Corp.

Rising Dragon Acquisition Corp. is a blank check company newly incorporated as a Cayman Islands exempted company with limited liability 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.

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 are subject to risks and uncertainties, which could cause actual results to differ from the forward-looking statements. 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:

Wenyi Shen
woody.shen@hywincapital.cn
Rising Dragon Acquisition Corp.
No. 604, Yixing Road, Wanbolin District, Taiyuan City,
Shanxi Province, People’s Republic of China

FAQ

What was the IPO price for Rising Dragon Acquisition Corp. (RDACU) units?

Rising Dragon Acquisition Corp. (RDACU) units were priced at $10.00 per unit in the initial public offering.

How many units were sold in Rising Dragon Acquisition Corp.'s (RDACU) IPO?

Rising Dragon Acquisition Corp. (RDACU) sold 5,750,000 units in its initial public offering, including the full exercise of the underwriters' over-allotment option.

When did Rising Dragon Acquisition Corp. (RDACU) units begin trading on NASDAQ?

Rising Dragon Acquisition Corp. (RDACU) units began trading on the NASDAQ Capital Market on October 11, 2024.

What do the rights included in Rising Dragon Acquisition Corp. (RDACU) units entitle holders to?

Each right included in Rising Dragon Acquisition Corp. (RDACU) units entitles the holder to receive one-tenth (1/10) of one ordinary share upon the consummation of an initial business combination.