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Stock Markets January 26, 2026

Legato Merger Corp. IV Raises $230 Million in NYSE American IPO

SPAC issues 23 million units and parks proceeds in trust as it targets infrastructure, industrial, AI and technology deals

By Avery Klein
Legato Merger Corp. IV Raises $230 Million in NYSE American IPO

Legato Merger Corp. IV completed an initial public offering of 23 million units at $10 each, collecting $230 million after full exercise of a 3 million-unit over-allotment. The special purpose acquisition company began trading its units on NYSE American under the ticker "LEGO U." Proceeds from the IPO and a concurrent private placement were placed into trust as the Cayman Islands-incorporated SPAC seeks merger targets in infrastructure, industrial, artificial intelligence and technology.

Key Points

  • Legato Merger Corp. IV sold 23 million units at $10 each, raising $230 million after full exercise of a 3 million-unit over-allotment option.
  • Units began trading on NYSE American as "LEGO U"; each unit contains one ordinary share and one-third of a redeemable warrant, with whole warrants exercisable at $11.50.
  • Proceeds from the IPO and a concurrent private placement were placed into a trust; the Cayman Islands-incorporated SPAC will pursue mergers in infrastructure, industrial, artificial intelligence and technology sectors.

Legato Merger Corp. IV has closed its initial public offering, selling 23 million units at $10.00 apiece and raising gross proceeds of $230 million. The offering included the full exercise of the underwriters' over-allotment option, which added 3 million units to the total.

Trading of the special purpose acquisition company’s units commenced on the NYSE American under the symbol "LEGO U." Each unit comprises one ordinary share and one-third of a redeemable warrant. According to the offering terms, whole warrants permit the holder to buy one ordinary share for $11.50. When the company begins separate trading of the components, the ordinary shares and warrants will trade under the symbols "LEGO" and "LEGO WS," respectively.

Legato Merger Corp. IV placed the $230 million in net proceeds from the public offering, together with funds received in a simultaneous private placement, into a trust account. Incorporated in the Cayman Islands, the entity was organized to identify and complete mergers, acquisitions or similar business combinations. The company has stated it will concentrate on potential targets in the infrastructure, industrial, artificial intelligence and broader technology sectors.

BTIG acted as the sole book-running manager for the transaction. The Securities and Exchange Commission declared the SPAC's registration statement effective on January 22, 2026. The company has committed to filing a Current Report on Form 8-K that will include an audited balance sheet showing the proceeds from the IPO.

Gregory Monahan is named as chief executive officer of Legato Merger Corp. IV.

Additional promotional note included with the offering announcement: The company’s release also featured a summary of Investing.com's ProPicks AI product, stating that the service offers dozens of stock portfolios selected by its AI, and claiming that year to date two out of three global portfolios were outperforming their benchmarks with 88% of positions in the green. The release cited performance for a flagship strategy, noting it doubled the S&P 500 within 18 months and referenced past winners including Super Micro Computer (+185%) and AppLovin (+157%). The publication also included a promotional line advertising a New Year’s sale at 55% off.

Risks

  • The company was formed to pursue mergers, acquisitions or similar business combinations - the timing and selection of any target remain uncertain, creating execution risk for investors (impacting infrastructure, industrial, AI and technology sectors).
  • Ordinary shares and warrants are currently bundled as units and will trade separately later - the timing and market reaction to separate trading are uncertain and could affect liquidity and price formation for investors.
  • While proceeds were placed into trust, the ultimate use of funds depends on completing a qualifying business combination, leaving proceeds effectively held in escrow until a combination is announced and consummated.

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