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Lion Capital's third SPAC Leo Holdings III files for a $200 million IPO

January 21, 2021
LHCT.RC

Leo Holdings III, the third blank check company formed by Lion Capital executives targeting consumer businesses, filed on Thursday with the SEC to raise up to $200 million in an initial public offering.

The Nassau, Bahamas-based company plans to raise $200 million by offering 20 million units at $10. Each unit consists of one share of common stock and one-fourth of a warrant, exercisable at $11.50. At the proposed deal size, Leo Holdings III would command a market value of $250 million.

The company is led by CEO and Director Lyndon Lea, co-founder and Managing Partner of Lion Capital; CFO and Director Robert Darwent, co-founder of Lion Capital, where he sits on the Investment Committee and Operating Committee; and Chairman Ed Forst, who currently serves as Chairman and Partner of Lion Capital. The company plans to target the consumer sector, focusing on established businesses with a leading competitive position, strong management team, and collaborative and collegiate culture, among other characteristics.

The group's previous SPACs include Leo Holdings II (LHC.U), which went public earlier this month, and Leo Holdings, which went public in February 2018 and acquired Digital Media Solutions (DMS; +14% from $10 offer price) in July 2020.

Leo Holdings III was founded in 2021 and plans to list on the NYSE, but has not selected a symbol yet (RC ticker: LHCT.RC). Deutsche Bank is the sole bookrunner on the deal.