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“The bourgeoisie cannot exist without a continuous revolution in the instruments of production.” This is what the German philosophers Karl Marx and Friedrich Engels stated in their controversial book despite its historical importance, Communist Manifesto. Originally titled Communist Party Manifesto, the pioneering work eventually came to represent irony in irony, though certainly an unintended consequence by the authors.
Emphasizing the central ethos of Marxist philosophies is the concept that capitalism is incompatible with the fundamental interests of the working class. According to Marx, workers are kept away from the means of production because their use of this mechanism stems from implicit coercion: the worker must convert time into wages as a matter of survival. Therefore, the philosopher concluded that the working class would eventually revolt against the ruling aristocracy.
However, rather than revolutionizing the mechanics of production, modern firms—particularly industrial firms—were unexpectedly slow to embrace burgeoning innovations. Among the challenges that Harvard Business Review An unwillingness to embrace an advanced learning culture has unnecessarily hampered the company’s progress.
Moreover, delays in technology adoption have been a problem for decades. Ironically, the act of de-revolutionizing the tools of production provides job security. But the impact of COVID-19 is finally forcing a technological rethink, which bodes well for an initial public offering (IPO) Industrial Technology Acquisitions II, Inc.
When is the initial public offering of industrial technology acquisitions?
Focusing on integrating with technology-focused areas such as software, mobile and remote communications (such as 5G), applications that include the Internet of Things (IoT), digital transformation solutions, energy and cloud computing, Industrial Tech Acquisitions II initially presented its intention to trade secretly with the US Securities and Exchange Commission (SEC) on January 25, 2021.
However, after additional groundwork and multiple adjustments to its market prospectus, Industrial Tech will finally sign its name on the IPO calendar on January 12, nearly a year after the company first announced its public ambitions. The shares will be traded on the NASDAQ Stock Exchange under the ticker symbol ITAQU.
Under the terms of the IPO, Industrial Tech will distribute 15 million shares at $10 per unit, resulting in a total increase of $150 million before deducting transaction-related expenses. Each unit of ITAQU consists of one share of common stock and one half of the security, which can be exercised at $11.50. The only ledger manager for procedures is Wells Fargo & Co (NYSE: WFC).
One of the most relevant new listings due to the delay in companies’ adoption of efficient and innovative workflow solutions, ITAQU stock is jumping into the fray at a critical moment. As you read, the IPO market saw a record high last year, with new US-based listings generating a valuation above $301 billion. With global IPOs accumulating, the proceeds total more than $594 billion.
However, the financial market – as with the known universe – operates under the law of gravity. While positivity tends to generate more positivity, history is replete with examples of outcomes that brazenly interrupt collective fantasies. Write an opinion piece for New York times, Robert J. Schiller, professor of economics at Yale University, provided a stark reminder of what can happen when investors deliberately abandon their logical predicament.
Adding to the pressure on ITAQU’s shares is that the underlying investment is linked to a special purpose acquisition company (SPAC). Unlike a typical public market raise, SPAC — also known as a shell company or blank check company — has no core operations. Rather, it is intended to launch an IPO to raise funds to support a merger with a private foundation.
Once the business combination is complete, SPAC assumes the identity of the target organization. In turn, the latter has a roundabout way of entering the public arena, hence the common term for reverse merger. Although SPACs enable private companies to go public relatively quickly, you should conduct extensive due diligence before proceeding.
Industrial technology acquisitions 2 financial history
Due to its structure as a front company, Industrial Tech Acquisitions II has no financial history other than a total raise of $150 million. If the IPO continues on the specified terms, SPAC will achieve a market value of $188 million.
After it is collected, the funds raised for SPAC IPOs go into a trust account. If the Blank Check Corporation succeeds in defining and completing the Business Suite, the account becomes part of the new GE. In addition, SPAC stakeholders become owners of shares in the new index in proportion to their stake and as specified in the transaction specification.
SPAC typically has about two years to merge with a private enterprise (for industrial technology, the time limit is 15-18 months from closing the IPO, depending on whether SPAC exercises the time extension option). If no merger candidate materializes after the time expires, shares of stock will be redeemed to shareholders at the initial offering price (usually $10 per share).
It should also be noted that if SPAC investors do not agree to the proposed business combination, they can choose to redeem their shares rather than proceed with the merger. As data from Dealogic indicated, SPAC redemption rates in 2021 are exceptionally higher compared to rates in 2020, meaning that many stakeholders would rather absorb the opportunity cost of owning a shell company for about two years rather than move forward with a possibly bad deal.
Although blank check companies do impose many financial nuances that you should be aware of before signing your name on the dotted line, you should also judge each opportunity by its own merits. Here, Industrial Tech appears to outperform other SPACs in a relevant area of focus.
In the first place, the COVID-19 pandemic has provided a wake-up call to industrial companies in all disciplines that their longstanding indifference to technology integration and workflow improvements is no longer palatable nor sustainable. Thus, it comes as no surprise that a June 2021 report by Grand View Research indicates that by 2028, the industrial Internet of Things market could explode to $1.11 trillion – an astounding compound annual growth rate (CAGR) of 22.8% as of 2021.
For more perspective, Mexico’s GDP (15th in the world) is $1.15 trillion. Thus, if Industrial Tech successfully completes a viable line of business, ITAQU stock could rise.
Potential Industrial Technology II Acquisitions
Although the impact on the balance in relation to the COVID-19 pandemic is largely negative, for some business communities the global health crisis has provided the start they need to move digital technology integration. Furthermore, a report by McKinsey & Company reveals that “responses to COVID-19 have accelerated the adoption of digital technologies for several years – and that many of these changes could be here in the long run.”
So, in theory, it shouldn’t be too difficult for an industrial tech to identify a promising merger target. Furthermore, few traits provide more confidence in a plumber’s yard than sponsors who have a proven track record of success. Industrial Technology CEO Scott Crest led the first iteration of SPAC, leading to a business merger with Arbe Robotics (NASDAQ: ARBE), an ultra-high-resolution radar imaging company.
Despite this huge potential, ITAQU shares – like any shell company – are characterized by significant risk. In fact, you only need to look at the performance of Arbe Robotics, which fell by about 20% between the sessions of December 9, 2021 and January 7, 2022, to realize that attractive marketing brochures do not fit with strict money management.
How to Buy Industrial Technology IPOs II (ITAQU)
If you intend to acquire ITAQU on the open market, you will need to know how to buy shares. Below is a quick update.
Step 1: Choose a brokerage.
With the best brokers nowadays vying for similar incentives, take your time to consider the platform that best suits your needs.
Step 2: Select the number of posts you want.
Since SPAC-based IPOs are essentially blind orders, they are usually very risky. Therefore, choose a balanced number of shares.
Step 3: Choose your application type.
Before trading, learn these market concepts.
- tender: Best offer to the buyer of the stock.
- Request: The lowest price acceptable to the seller.
- diffuse: The difference between the bid and ask price, the spread refers to the market risk as this also represents the profit margin for the market makers.
- Limited request: Orders to buy or sell at a predetermined price, limit orders provide transparency but there are no guarantees of execution.
- market order: Market orders guarantee fulfillment but only at the current price.
- Stop Loss Order: Stop Loss orders automatically exit your position at either a pre-set price or a lower price.
- Stop-Limit command: Stop-Limit orders not only leave positions at a specified price, but also carry the risk of non-fulfillment.
Step 4: Execute your trade.
Follow these steps to execute a market order:
- Select your action type (buy or sell).
- Enter the shares you want to acquire (or sell).
- Click the buy (or sell) button.
Follow the same sequence for limit orders (but include your own strike price).
ITAQU Restrictions on Retail Investors
Review the Financial Industry Regulatory Authority (FINRA) rules on prohibited persons prior to participating in an IPO. Do not share if you have privileged information.
The Securities and Exchange Commission is directing investors seeking pre-IPO information about ITAQU shares to the electronic trading platform Webull.
securely through the Web site
Intermediate Traders and Investors
Webull, founded in 2017, is a mobile app-based brokerage that features commission-free stock trading and exchange-traded funds (ETF). It is regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).
Webull offers active traders technical indicators, economic calendars, ratings from research agencies, margin trading and short selling. The Webull trading platform is designed for intermediate and experienced traders, although novice traders can benefit from it as well.
Webul is widely considered one of the best Robinhood alternatives.
- Active Traders
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- There are no account maintenance fees or software platform fees
- There are no fees to open and maintain an account
- Easy-to-use trading platform with technical and fundamental analysis tools
- It does not support trading in mutual funds, bonds or OTC stocks
Strong potential with a stuck question
Undoubtedly, the targeted focus of Industrial Technology II acquisitions – supporting industrial firms with cost-saving and revenue-generating innovations – is extraordinarily relevant. However, as SPAC’s first iteration emphasized, a great marketing narrative doesn’t always match reliable profitability.