IPOs

SPAC Growth Capital Acquisition lowers deal size by 17% ahead of $125 million IPO

Growth Capital Acquisition, a blank check company formed by Greek shipping executives targeting an emerging growth company, lowered the proposed deal size for its upcoming IPO on Tuesday.

The New York, NY-based company now plans to raise $125 million by offering 12.5 million units at $10. The company had previously filed to offer 15 million units at the same price. Each unit consists of one share of common stock and one-half of a warrant, exercisable at $11.50. At the revised deal size, Growth Capital Acquisition will raise -17% less in proceeds than previously anticipated.

The company is led by Co-CEO and Chairman Prokopios Tsirigakis, the CEO of Nautilus Energy Management and SevenSeas Investment Fund, and Co-CEO and CFO George Syllantavos. The company is targeting global emerging growth and lower-to-middle market companies with enterprise values of $300 million to $1.5 billion, strong platforms within niche market segments that and would benefit from access to the public markets, and management teams that have showcased industry leading operational expertise and a track record of providing returns to investors.

The pair's most recent SPAC, Stellar Acquisition III, went public in August 2016 and acquired tech startup Phunware (Nasdaq: PHUN; -87% from $10 offer price) in December 2018.

Growth Capital Acquisition was founded in 2010 and plans to list on the Nasdaq under the symbol GCACU. Maxim Group LLC is the sole bookrunner on the deal.

The article SPAC Growth Capital Acquisition lowers deal size by 17% ahead of $125 million IPO originally appeared on IPO investment manager Renaissance Capital's web site renaissancecapital.com.

Investment Disclosure: The information and opinions expressed herein were prepared by Renaissance Capital's research analysts and do not constitute an offer to buy or sell any security. Renaissance Capital's Renaissance IPO ETF (symbol: IPO), Renaissance International ETF (symbol: IPOS), or separately managed institutional accounts may have investments in securities of companies mentioned.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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