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LGL to list on Nasdaq
Posted on Tuesday, 08 October 2019 14:43
LGL Systems Acquisition has hired Jefferies as sole bookrunning manager to an initial public offering (IPO) worth as much as USD 143.75 million as the US-incorporated blank check company becomes the latest cash shell to head to the capital markets.

The Nevada-based vehicle is issuing 12.50 million units at USD 10.00 apiece and has provided the underwriters, which include BTIG as lead manager, with an overallotment option for a further 1.88 million securities.

Zephyr, the M&A database published by Bureau van Dijk, shows 22 IPOs by special purpose acquisition companies (SPACs) incorporated in the US have been announced in 2019 to date.

The three largest listings of the year are each worth USD 400.00 million, with two featuring a listing on Nasdaq (Haymaker Acquisition Corporation II and Conyers Park II) and one on the New York Stock Exchange (Churchill Capital Corp II).

Delaware-incorporated, Reno-based LGL was formed to carry out an initial business combination in the aerospace, defence and communications industries.

The SPAC’s sponsor is affiliated with the Gabelli Group, which has focused on aerospace, defence and communications investments for over 30 years, and Aston Capital.

LGL will focus on companies with enterprise valuations in the range of USD 350.00 million to USD 1.00 billion that offer differentiated products and services.

This could include highly-engineered systems, technologies and applications directed towards the department of defence, other US government agencies, allied foreign governments and NATO allies.

LGL said in its prospectus it believes “there is a significant growth opportunity in the US defence landscape due to the continued emphasis on modernisation of existing weapons, ships, aircraft and electronic warfare capabilities”.

The SPAC noted the country’s budget in this area has increased 20.0 per cent since 2013 and is “poised to see strong near-term growth through government fiscal year 2021”.

© Zephus Ltd