Cerberus ICT entity prepares for $400m IPO
A special purpose acquisition company (SPAC) formed by Cerberus Capital Management has filed IPO paperwork with the US Security and Exchange Commission (SEC).
Its statement said Cerberus Telecom Acquisition plans to “leverage its management team's experience and target the information and communications technology (ICT) industry.” That team is led by Chairman Frank Bruno, who is co-CEO of Cerberus Capital Management's global investment activities, and CEO Timothy Donahue, who previously served as CEO of Nextel Communications. Donahue also helped facilitate the company's merger with Sprint.
The New York-based company is planning to raise US$400 million in its IPO.
According to NASDAQ, Cerberus Telecom Acquisition was founded in 2020 and plans to list on the NYSE under the symbol CTAC.U. The company filed confidentially on September 21, 2020 with Morgan Stanley and Deutsche Bank appointed joint bookrunners on the deal.
Cerberus Telecom Acquisition will offer 40 million units at $10, with each unit consisting of one share of common stock and one-fourth of a warrant, exercisable at $11.50. The company plans to raise $11 million in a concurrent private placement to its sponsor. At the proposed deal size, Cerberus Telecom Acquisition would command a market value of $511 million.
Its paperwork continued to read: “Currently, there is no public market for our securities. We intend to apply to have our units listed on the New York Stock Exchange, or the NYSE. We expect that the Class A ordinary shares and warrants comprising the units will begin separate trading on the NYSE on the 52nd day following the date of this prospectus unless the representatives of the underwriters permit earlier separate trading and we have satisfied certain conditions.
“We are an emerging growth company under applicable federal securities laws and will be subject to reduced public company reporting requirements.”