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New Providence to list on Nasdaq, raise USD 200mn
Posted on Friday, 06 September 2019 12:53
New Providence, a consumer industry-focused special purpose acquisition company (SPAC) helmed by the founder and managing partner of Annex Capital, is holding an initial public offering (IPO) potentially worth as much as USD 230.00 million.

The Texan cash shell is selling 20.00 million units in the float on Nasdaq and has provided BTIG, the sole book-running manager, with an overallotment option comprising an additional 3.00 million securities.

Sponsor New Providence Management, which was established by the SPAC’s chairman, Alexander Coleman, is buying 5.50 million warrants in a concurrent private placement.

Coleman has 20 years of institutional private equity experience that is focused predominantly on US-based middle market companies operating in the food and beverage, information and business services and specialised manufacturing markets.

He is also the founder of Annex Capital, a private equity house established in 2004 to make controlled investments in a broad array of industries, and to acquire distressed debt and direct equity in the secondary market.

New Providence will concentrate on carrying out an initial business combination in the consumer sector by finding a target with strong drivers of revenue and earnings growth and exhibits barriers to competition.

Other criteria include potential to generate stable free cash flow, is underperforming its operating potential and not making the most of its balance sheet.

New Providence’s IPO will not be the largest by value by a SPAC this year; Zephyr, the M&A database published by Bureau van Dijk shows 12 cash shells have completed a listing in the US in 2019 to date.

At USD 400.00 million, the biggest is currently by Haymaker Acquisition Corporation II, which is followed by Acamar Partners Acquisition and Act II Global Acquisition each raising USD 300.00 million in their respective debuts on Nasdaq.

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