Colombier Acquisition III, the third blank check company led by financier Omeed Malik, filed on Friday for a $260 million initial public offering. This move signals a continued effort by Malik’s 1789 Capital to fund companies aligned with an “American Exceptionalism” thesis. This IPO tests investor interest in both the stabilizing SPAC model and this specific, patriotic-focused investment strategy, especially in light of the performance of the team’s previous ventures.
Company Background
Colombier Acquisition III is a special purpose acquisition company (SPAC) with no current operations, formed specifically to raise capital and merge with a private business. The company is led by CEO and Chairman Omeed Malik, the founder of investment bank Farvahar Partners and the founder of 1789 Capital, a venture firm linked to President Donald Trump. The SPAC’s stated goal is to target businesses within the “Entrepreneurship, Innovation, and Growth (EIG) economy,” explicitly aiming to fund companies that “help Make America Grow Again.”
IPO Details
The Palm Beach, Florida-based company plans to list on the New York Stock Exchange under the ticker symbol CLBR.U. The IPO aims to raise $260 million by offering 26 million units at a fixed price of $10.00 each. Each unit consists of one share of common stock and one-eighth of one warrant, which will be exercisable at $11.50 per share post-merger. Roth Capital is serving as the sole bookrunner for the deal.
Market Context & Opportunities
This IPO arrives in a highly selective and chastened SPAC market, a stark contrast to the boom of 2021. However, the company’s tightly defined patriotic investment focus may appeal to a specific, contrarian investor base that feels overlooked by mainstream finance. By targeting businesses aligned with its “American Exceptionalism” theme, the SPAC provides a public market vehicle for those seeking to invest in domestic-focused or traditional industries. A successful merger could offer a capital-constrained private company an alternative path to the stock market.
Risks & Challenges
The primary and most significant headwind for potential investors is the severe underperformance of the management team’s previous SPACs. Colombier Acquisition I merged with “patriotic” marketplace PSQ Holdings (PSQH), which has seen its stock decline nearly 80% from its $10 offer price since its 2023 merger. Similarly, Colombier Acquisition II’s 2023 combination with online gun retailer GrabAGun (PEW) is down over 54%. This poor post-merger track record raises critical questions about deal sourcing and valuation, which will undoubtedly weigh on investor interest.
Closing Paragraph
Ultimately, the Colombier Acquisition III IPO presents a very clear proposition for the stock market. Will the specialized, “American Exceptionalism” theme and Omeed Malik’s deal-making network be enough to attract a dedicated base of investors and, more importantly, secure a high-quality merger that breaks the negative trend? Or will the poor performance of its predecessors make this market debut just another capital-raising event destined to struggle for investor confidence? The market’s reception of the CLBR.U ticker will be a telling indicator of the appetite for this niche investment thesis.
