Legato Merger IV, a blank check company led by seasoned SPAC executives Eric Rosenfeld and David Sgro, has filed for a $200 million initial public offering in the United States. The filing adds another sizable deal to the late-2025 IPO pipeline, signaling continued sponsor confidence in industrial, infrastructure, and artificial intelligence-focused acquisitions despite a selective capital markets environment.

Company Background and Sponsorship

Legato Merger IV builds on the track record of its leadership team, which has collectively sponsored nine prior SPACs. Vice Chairman David Sgro and Chief SPAC Officer Eric Rosenfeld are well-known figures in the SPAC market, most recently backing Legato Merger III, which announced a merger with Swedish electric and autonomous trucking company Einride in November. Earlier vehicles included Legato Merger II, which merged with Southland Holdings in 2023, and the original Legato Merger, which combined with Algoma Steel in 2021.

The company is led by CEO and Director Gregory Monahan, a Senior Managing Director at Crescendo Partners, and Chairman Brian Pratt. Together, the management team brings deep experience across capital markets, infrastructure, and industrial businesses, positioning the SPAC to pursue complex transactions in capital-intensive sectors.

IPO Details

Legato Merger IV plans to raise $200 million by offering 20 million units priced at $10.00 each. Every unit will include one share of common stock and one-third of a warrant, with each whole warrant exercisable at $11.50. The SPAC intends to list on the New York Stock Exchange under the symbol LEGO.U. BTIG is serving as the sole bookrunner for the offering, and the company filed confidentially with the SEC on October 14, 2025.

Market Context and Strategic Focus

The filing comes as investor interest in industrial transformation and artificial intelligence continues to shape dealmaking priorities. Infrastructure modernization, supply chain reshoring, and AI-driven efficiency gains are creating opportunities across traditional industrial sectors. By targeting infrastructure, industrials, AI, and technology, Legato Merger IV aims to capitalize on businesses that sit at the intersection of physical assets and digital innovation.

While the broader SPAC market remains more disciplined than in prior cycles, sponsors with proven experience and sector focus have found receptive investors, particularly when targeting assets tied to long-term structural trends.

Risks and Challenges

As with all SPACs, Legato Merger IV faces execution risk in identifying and completing an attractive business combination within the required timeframe. Past performance of related SPAC mergers has been mixed, and public market investors remain cautious about post-merger valuation and operating performance. In addition, competition for high-quality industrial and AI assets has intensified, potentially pressuring deal terms.

Looking Ahead

Legato Merger IV’s IPO filing underscores that experienced sponsors continue to see opportunity in the SPAC structure, particularly for complex industrial and AI-driven businesses. The ultimate test will be whether Rosenfeld and Sgro can translate their experience into a transaction that resonates with public investors, or whether this vehicle will face the same post-merger scrutiny that has defined the sector in recent years.