Rosenfeld and Sgro's latest SPAC Legato Merger III files for a $175 million IPO

Legato Merger III, a blank check company targeting the infrastructure, E&C, industrial and renewables industries, filed on Thursday with the SEC to raise up to $175 million in an initial public offering.

The New York, NY-based company plans to raise $175 million by offering 17.5 million units at $10. Each unit consists of one share of common stock and one-half of a warrant, exercisable at $11.50. At the proposed deal size, Legato Merger III would command a market value of $225 million.

The company is led by SPAC veterans Vice Chairman David Sgro and Chief SPAC Officer Eric Rosenfeld, who have led eight previous SPACs. The most recent include Legato Merger II, which merged with construction company Southland Holdings (SLND; -50% from $10 offer price) in February 2023, and Legato Merger, which merged with Canadian steel producer Algoma Steel (ASTL; -18%) in October 2021. They are joined by CEO and Director Gregory Monahan, who is Senior Managing Director of Crescendo Partners, and Chairman Brian Pratt. The company intends to target businesses in the infrastructure, engineering and construction ("E&C"), industrial, and renewables industries.

Legato Merger III was founded in 2023 and plans to list on the NYSE American under the symbol LEGT.U. BTIG is the sole bookrunner on the deal.