Ribbon Acquisition Corp Prices $50 Million Initial Public Offering
Rhea-AI Summary
Ribbon Acquisition Corp, a Cayman Islands-based blank check company, has announced the pricing of its initial public offering (IPO) of 5,000,000 units at $10.00 per unit. Each unit comprises one Class A ordinary share and one right to receive one-seventh of one Class A ordinary share upon completing an initial business combination.
The units will trade on Nasdaq under the symbol 'RIBBU' starting January 15, 2025, with the IPO expected to close around January 16, 2025. Once separate trading begins, the Class A shares and rights will trade under 'RIBB' and 'RIBBR' respectively.
A.G.P./Alliance Global Partners is the sole book-running manager, with The Benchmark Company as co-manager. The underwriters have a 45-day option to purchase up to 750,000 additional units to cover over-allotments.
Positive
- IPO raises $50 million through 5,000,000 units at $10.00 each
- Listing on Nasdaq provides increased visibility and trading liquidity
- 45-day over-allotment option could add $7.5 million in additional capital
Negative
- Blank check structure carries inherent uncertainty until business combination is identified
- 1/7 right structure creates potential future dilution for shareholders
Insights
The SPAC market is showing signs of life with Ribbon Acquisition Corp's
The modest size of this SPAC (
While SPAC activity has significantly cooled since the 2020-2021 boom, this IPO indicates continued selective appetite for blank check vehicles, particularly in the lower middle market where traditional IPO options are The Cayman Islands incorporation suggests potential interest in international targets, possibly in Asia-Pacific markets where A.G.P. has strong relationships.
The S-1 registration effectiveness and rapid pricing announcement demonstrates efficient SEC review process turnaround. The inclusion of a 45-day overallotment option is standard market practice, providing price stability support during initial trading. Key legal considerations include the Cayman Islands domicile, which offers tax advantages but requires additional regulatory compliance measures for US investors.
The rights structure (1/7 share per right) represents a more shareholder-friendly approach compared to traditional warrant-heavy SPAC structures. This mechanism potentially reduces future dilution while still providing upside participation for IPO investors. The dual counsel arrangement between Sichenzia Ross and Loeb & Loeb ensures robust legal framework for both issuer and underwriter sides, critical for SPAC governance and eventual business combination process.
New York, New York, Jan. 14, 2025 (GLOBE NEWSWIRE) -- Ribbon Acquisition Corp, a blank check company incorporated in the Cayman Islands as an exempted company (the “Company”), today announced the pricing of its initial public offering (“IPO”) of 5,000,000 units at an offering price of
A.G.P./Alliance Global Partners is acting as the sole book-running manager for the offering. The Benchmark Company, LLC is acting as the co-manager for the offering.
The Company has granted the underwriters a 45-day option to purchase up to 750,000 units at the initial public offering price to cover over-allotments, if any.
Sichenzia Ross Ference Carmel LLP served as legal counsel to the Company and Loeb & Loeb LLP served as legal counsel to A.G.P./Alliance Global Partners in the offering.
A registration statement on Form S-1 relating to the securities (File No. 333-281806) was previously filed with the Securities and Exchange Commission ("SEC") and was declared effective by the SEC on January 14, 2025. This offering was made only by means of a prospectus forming part of the effective registration statement. Copies of the prospectus may be obtained on the SEC’s website at http://www.sec.gov. Electronic copies of the prospectus may be obtained from A.G.P./Alliance Global Partners, 590 Madison Avenue, 28th Floor, New York, NY 10022, or by telephone at (212) 624-2060, or by email at prospectus@allianceg.com.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.
About Ribbon Acquisition Corp
The Company is a blank check company incorporated in the Cayman Islands as an exempted company with limited liability for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, recapitalization, reorganization or similar business combination with one or more businesses or entities. While the Company intends to conduct a global search for target businesses without being limited by geographic region, certain executive officers and independent directors are based in Hong Kong, and certain executive officers have experience investing in and building businesses in the Asia Pacific region and have a deep understanding of the region’s business environment, regulations, regulatory bodies and culture. The Company will not undertake an initial business combination with any company being based in or having the majority of the company’s operations in Greater China. The Company is led by Mr. Angshuman (Bubai) Ghosh, the Company’s Chief Executive Officer, and Ms. Zhiyang (Anna) Zhou, the Company’s Chief Financial Officer.
Forward-Looking Statements
This press release contains statements that constitute “forward-looking statements,” including with respect to the IPO and search for an initial business combination. No assurance can be given that the offering discussed above will be completed on the terms described, or at all, or 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 and preliminary prospectus for the IPO 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:
Ribbon Acquisition Corp
Anna Zhou
Chief Financial Officer
Email: anna.zhou@ribbonacquisitioncorp.com
FAQ
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