Magic Johnson’s SPAC – ESH Acquisition Corp. (ESHAU) – raised $100 million in its IPO priced on Tuesday night, June 13, 2023 – becoming the first deal priced this month. The entertainment and sports-focused SPAC priced its IPO in sync with the terms in its prospectus: 10 million units at $10.00 each. Each unit consists of one share of common stock and one right to receive 1/10th (one-tenth) of a share of stock upon completion of the initial business combination.
ESH Acquisition’s stock opened today – Wednesday, June 14 – at $10.08, up 8 cents or 0.8 percent from its IPO price – on NASDAQ. The closing price was $10.09 – a gain of 9 cents or 0.9 percent in ESH Acquisition’s NASDAQ debut – on volume of about 7.6 million shares.
I-Bankers Securities and IB Capital LLC acted as the joint book-runners. Dawson James Securities was the co-manager.
Earvin “Magic” Johnson, the former NBA star, is the vice chairman of ESH Acquisition Corp. He made history in 2012 when he became co-owner of the Los Angeles Dodgers. Johnson started his career as an entrepreneur after leaving professional basketball. He is the chairman and CEO of Magic Johnson Enterprises.
Allen Weiss, a former Disney executive, is the sponsoring founder and chairman of the board of ESH Acquisition Corp. His Disney career ran from 1972 to 2011. Weiss was the president of Walt Disney World from 1994 to 2003, the prospectus says. From 2003 to 2011, he was the president of World Wide Operations for Disney’s $10 billion Walt Disney Parks and Resorts business.
ESH Acquisition Corp., based in New York, intends to search for a target business in the global entertainment, sports and hospitality sectors, the prospectus says.
At pricing, ESH Acquisition Corp. became the 16th SPAC IPO priced so far this year.
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