Rising Dragon Acquisition Corp. Announces Pricing of $50 Million Initial Public Offering
Rhea-AI Summary
Rising Dragon Acquisition Corp. (NASDAQ: RDAC) has priced its initial public offering (IPO) at $50 million. The offering includes 5,000,000 units priced at $10.00 per unit. Each unit consists of one ordinary share and one right, with each right entitling the holder to receive one-tenth of one ordinary share upon the consummation of an initial business combination. The units will be listed on the NASDAQ Capital Market under the ticker symbol RDACU starting October 11, 2024. Once separate trading begins, the ordinary shares and rights will trade under the symbols RDAC and RDACR respectively. The offering is expected to close on October 15, 2024, subject to customary closing conditions. Lucid Capital Markets is managing the offering, with Loeb & Loeb LLP and Blank Rome LLP serving as legal counsel.
Positive
- Rising Dragon Acquisition Corp. raised $50 million through its IPO.
- The IPO consists of 5,000,000 units priced at $10.00 per unit.
- The units will be listed on NASDAQ under the ticker symbol RDACU.
- Lucid Capital Markets is managing the offering.
Negative
- Shareholders need ten rights to receive one ordinary share, which may dilute the value of individual rights.
Insights
Rising Dragon Acquisition Corp.'s $50 million IPO marks a significant entry into the SPAC market. The pricing at
The 45-day over-allotment option for an additional 750,000 units provides flexibility to meet excess demand, potentially increasing the total raise to
Investors should note that SPACs carry inherent risks, as success depends on finding a suitable target within the typical 18-24 month timeframe. The
The launch of Rising Dragon Acquisition Corp. reflects the ongoing appetite for SPACs in the market, despite recent regulatory scrutiny. This China-based SPAC could potentially target high-growth sectors in the Asian market, offering U.S. investors unique exposure to these opportunities.
The choice of Lucid Capital Markets as the sole book runner suggests a focused distribution strategy. Investors should monitor the initial trading performance of RDACU units, as it may indicate market sentiment towards China-focused SPACs in the current geopolitical climate.
The separate trading of shares (RDAC) and rights (RDACR) will provide additional liquidity options for investors. However, the lack of traditional warrants in the unit structure may result in less speculative trading compared to other SPACs, potentially leading to more stable price action in the near term.
SHANXI, CHINA, Oct. 10, 2024 (GLOBE NEWSWIRE) -- Rising Dragon Acquisition Corp. (NASDAQ: RDAC) (the "Company") announced today that it priced its initial public offering of 5,000,000 units at
The underwriters have been granted a 45-day option to purchase up to an additional 750,000 units offered by the Company to cover over-allotments, if any.
The offering is expected to close on October 15, 2024, subject to customary closing conditions.
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.
A registration statement relating to these securities was declared effective by the Securities and Exchange Commission on October 10, 2024. The offering is being made only by means of a prospectus, copies of which may be obtained by contacting Lucid Capital Markets, 570 Lexington Avenue, 40th Floor, New York, NY 10022. 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 Rising Dragon Acquisition Corp.
Rising Dragon Acquisition Corp. is a blank check company 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
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