As for today's IPO, Longevity Acquisition Corp (LOACU 10.12, +0.12, +1.20%) is a blank check company -- meaning, it doesn't actually have any business operations. Rather, its sole purpose is to execute merger(s) or acquisition(s) with another company. In the case of LOACU, it is specifically focusing on acquiring businesses that are strategically significant in China.
The company offered 4.0 mln shares, which priced at $10 as expected. Shares are set to open for trading later this morning on the Nasdaq.
As noted above, LOACU is a blank check company focused on merging or acquiring companies with exposure to China. It believes that it will add value to these businesses primarily by providing them with access to the U.S. capital markets. LOACU's management team consists of experienced financial services and accounting professionals and senior operating executives of companies in China.
Other than focusing on opportunities in China, its management will specifically look for a few other key attributes, including:
- Middle-Market Growth Businesses: LOACU will primarily seek to acquire one or more growth businesses with a total enterprise value of between $150-$250 mln. It believes that there are a substantial number of potential target businesses within this valuation range that can benefit from new capital for scalable operations to yield significant revenue and earnings growth.
- Business with Revenue and Earnings Growth Potential: It will also seek to acquire one or more businesses that have the potential for significant revenue and earnings growth through a combination of both existing and new product development, increased production capacity, expense reduction and synergistic follow-on acquisitions resulting in increased operating leverage.
- Benefit from Being a Public Company: LOACU intends to only acquire a business or businesses that will benefit from being publicly traded and which can effectively utilize access to broader sources of capital and a public profile that are associated with being a publicly traded company.
As of the date of its prospectus, it has yet to determine a time frame, an investment amount or any other criteria, which would trigger our search for business opportunities outside of China.