APEX Tech Acquisition Inc. has closed its initial public offering, raking in $111.97 million through the placement of 11,197,131 units priced at $10.00 per unit on the New York Stock Exchange. The sale included a partial exercise of the underwriters' overallotment option.
The units began trading on February 26 under the symbol TRADU. Each unit consists of one ordinary share and one right to receive one-fourth of an ordinary share if and when the company completes a business combination. The company said the ordinary shares and the rights will trade separately under the symbols TRAD and TRADR once separate trading of those securities commences.
A.G.P./Alliance Global Partners acted as the sole book-running manager for the offering. The Securities and Exchange Commission declared the company’s registration statement effective on February 25, clearing the way for the public sale.
Incorporated in the Cayman Islands, APEX Tech Acquisition is structured as a blank check company. It was formed with the objective of pursuing mergers, share exchanges, asset acquisitions or other similar business combinations with one or more businesses. The company has stated it will search for target businesses without restricting its search to a particular industry.
Legal advisers to the transaction included Venture Bridge Legal as U.S. counsel to the company, and Robinson & Cole LLP as U.S. counsel to the underwriters’ representative.
Offer mechanics and structure
The offering price and unit composition mean each investor in a unit holds an ordinary share plus a contingent right to a fractional share tied to the closing of a future business combination. The partial exercise of the underwriters’ overallotment option increased the number of units sold compared with a base deal size.
Corporate purpose and scope
APEX Tech Acquisition operates as a blank check vehicle incorporated in the Cayman Islands and established to identify and complete qualifying corporate transactions. The company’s stated plan is to pursue a business combination or combinations and it has not limited that search to any specific sector.
Market listings and next steps
With units trading under TRADU and the ordinary shares and rights flagged to trade separately later under TRAD and TRADR, market participants will be able to trade either the bundled units initially or the individual securities once the split occurs. The company will continue its search for a target business as described in its registration materials.