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Education as warfare. On the surface, the concept seems absurd as historically, the overwhelming solution to geopolitical tensions has been the deployment of arms and people
. But in the post-World War II era, the concept of non-combative initiatives has garnered substantial interest and utilization. Most notably, the fall of the Soviet Union occurred without the two major participants of the Cold War firing a shot — at least not against each other.
However, the ideological battleground has steadily shifted from weapons of mass destruction to attendance of advanced learning curriculum. As the globalized economy becomes much more competitive, the national security interests of the U.S. will become increasingly integrated with educational infrastructures. Otherwise, a lax attitude here will result in academic atrophy within a few generations.
David Skaggs, contributing for the Association of American Colleges & Universities, wrote that the “ability of the United States to protect itself and its interests around the world — our national security, broadly defined — depends directly on the strength of our economy. And it is clear that economic strength in the era of global competition depends on a nation’s educational attainment.”
As such, substantial global rivalries will likely erupt in the educational technology (EdTech) sector, making the upcoming initial public offering (IPO) of Aethereium Acquisition Corp. worthy of consideration.
When Is the Aethereium Acquisition IPO Date?
With the ferocity of speculation in the equities sector, it may not come as a surprise to onlookers that the benchmark indices experienced volatility across recent sessions. As well, the ongoing pandemic — especially the rapidly spreading omicron variant — and the Federal Reserve’s shift toward a hawkish monetary policy don’t necessarily augur well for continued market enthusiasm.
Then again, the one subsegment that has consistently enjoyed robust support is the IPO market. Per a Reuters report released in early December, new listings in the U.S. totaled over $301 billion at the time of publication, well exceeding the prior year’s record of $168 billion. Better yet, recent data indicates that plenty of retail investor money exists to fund these fresh ventures.
According to the National Association of Realtors (NAR), “Existing-home sales rose 1.9% in November from October to a seasonally adjusted annual rate of 6.46 million.” Per Lawrence Yun, NAR’s chief economist, “Determined buyers were able to land housing before mortgage rates rise further in the coming months.”
Therefore, Aethereium Acquisition, which focuses on a merger with an EdTech firm, lists during an auspicious period. It will enter the IPO calendar on Dec. 23 in a deal involving the distribution of 10 million units at a price of $10 per share. The equity unit will trade on the Nasdaq exchange under the ticker symbol GMFIU.
Under the proposed terms, Aethereium will command a market value of $128 million. EF Hutton represents the IPO’s sole bookrunner.
Unlike a traditional public market debut, Aethereium is a special purpose acquisition company (SPAC). Also labeled a blank-check firm or shell company, a SPAC has no underlying operations. Instead, its IPO is an effort to raise funds to support a business combination with a hopefully viable private firm.
Despite multiple criticisms about SPACs, they do offer benefits to retail investors. One advantage is pricing transparency over the typically volatile trading dynamics of traditional IPOs. A second benefit is the ability to participate in ground-floor opportunities that most average Joe or Jane investors won’t normally have access to.
Nevertheless, the sharp complaints about SPACs have merit. Perhaps most notably, Harvard Law School warns about the dilutive potential of blank-check firms, especially from the issuance of warrants. Just as worrisome, many shareholders have chosen to redeem their SPAC shares (at the initial offering price) rather than approve the underlying proposed business combination.
Aethereium Acquisition Financial History
Because of its structure as a shell company, Aethereium has no financial history other than its $100 million public raise. Indeed, the whole point about participating in a pre-merger-announcement SPAC is that no one knows what the eventual business combination will be. Sidestepping these regulations will put a wayward SPAC under the U.S. Securities and Exchange Commission’s (SEC) spotlight, as the sponsors of Digital World Acquisition Corp (NASDAQ: DWAC) found out.
However, interested buyers of GMFIU stock can still glean useful information from the underlying firm’s IPO prospectus. According to this document, Aethereium intends to focus on businesses in the education, training and EdTech industries, specifically in Asia (but excluding China). In fact, the sponsors will affirm on paper that Aethereium will not combine with enterprises with principal businesses in China (including Hong Kong and Macau).
This small but pertinent disclosure should help GMFIU stock overcome many American investors’ objections to supporting potentially adversarial interests. As the Pew Research Center reported, strong views regarding China’s draconian government have accelerated worldwide.
To be fair, SPACs are not legally beholden (outside of certified exclusions) to their disclosed intentions. Thus, Aethereium could merge with any company of any industry. However, to do so would negate the sponsors’ executive-level acumen, which not only covers EdTech but advanced solutions such as blockchain technologies, potentially hinting not just at the “what” of Aethereium but also the “how.”
Even if the SPAC were to just engage the EdTech sector in a straight-and-narrow fashion, the total addressable market for the segment is massive. According to Grand View Research, the global EdTech industry’s valuation reached $89.49 billion in 2020, aided in no small part by the COVID-19 pandemic coercing creativity among academic professionals. By 2028, experts project that the market’s revenue will hit $377.85 billion.
Better yet, MarketResearch.com reports that the Asia Pacific market is “expected to be the fastest-growing market for EdTech and smart classroom products.” Moreover, Nikkei Asia reports that Vietnam’s EdTech market “has exploded as the coronavirus pandemic accelerates demand for online learning, with big-name corporations and startups alike clamoring for a piece of the pie.”
Indeed, Nikkei stresses that there’s plenty to go around, as the “country's edtech market is now potentially worth $3 billion, up from about $2 billion in 2019.” Therefore, GMFIU stock is tied to an incredibly lucrative region. Possibly bring in a connection with Asia-based blockchain applications — where decentralized initiatives may be worth $322.7 billion by 2030 — and you may have an intriguing concept with Aethereium Acquisition.
Aethereium Acquisition Potential
Among the many potential upside catalysts for GMFIU stock is its possible indirect role as a geopolitical countermeasure. For instance, Vietnam’s robust EdTech industry isn’t just financially viable for a sector-related merger. As well, the Southeast Asian country has its own challenges with China, as the Carnegie Endowment for International Peace notes. Therefore, American investors can help fund Aethereium’s efforts with a clearer conscience.
Should the SPAC also leverage its executives’ blockchain acumen, GMFIU may attract strong support. As you know, cryptocurrencies have enjoyed a watershed moment, thanks to not only soaring prices but also via mainstream integration. Therefore, the combination of EdTech solutions with blockchain applications will only cement an evolution that’s well underway.
Still, nothing on Wall Street is without risk. For SPACs in general, their performance post-merger belies their early enthusiasm. As evidence, approved business combinations have underperformed benchmark indices, posing a warning for would-be participants.
In addition, higher interest rates detract from risk-on assets. Given the laggard nature of SPACs, it’s very possible that retail investors could sit on the sidelines regarding GMFIU stock.
How to Buy Aethereium Acquisition IPO (GMFIU) Stock
With Aethereium ready to go live soon, interested participants must acquire shares at the open, necessitating knowing how to buy stocks. Below is a quick refresher.
Step 1: Pick a brokerage.
With the best brokers competing on similar price offers, take the time to consider which platform ideally fits your needs.
- Best For:Active and Global TradersVIEW PROS & CONS:Securely through Interactive Brokers’ website
- Best For:Experienced TradersVIEW PROS & CONS:securely through Freedom Finance's website
Step 2: Decide how many shares you want.
IPOs always present risks, and that’s especially true for SPACs. Therefore, choose a balanced share count.
Step 3: Choose your order type.
Before trading, learn these market concepts.
- Bid: The buyer’s best offer for a stock.
- Ask: The seller’s lowest acceptable price.
- Spread: The difference between the bid-ask price, the spread indicates market risk as this is also the profit margin for market makers.
- Limit order: Buy or sell requests at a predetermined price, limit orders provide transparency but no execution guarantees.
- Market order: Market orders guarantee fulfillment but only at the current rate.
- Stop-loss order: Stop-loss orders automatically exit your position at either a predetermined price or anything lower.
- Stop-limit order: Stop-limit orders only leave positions at a specified price, but they also carry non-fulfillment risks.
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).
- Hit the Buy (or Sell) button.
Follow the same sequence for limit orders (but include your execution price).
GMFIU Restrictions for Retail Investors
Review the Financial Industry Regulatory Authority (FINRA) rules on restricted persons before participating in an IPO. Don’t engage if you have privileged information.
GMFIU Pre-IPO
Although GMFIU isn’t available for pre-IPO purchase, Freedom Finance offers early access to many hotly anticipated IPOs.
- Best For:Experienced TradersVIEW PROS & CONS:securely through Freedom Finance's website
EdTech with a Hint of Blockchain
As more nations turn to EdTech to give their future leaders the best academic training possible, Aethereium Acquisition features plenty of potential. Further, the fast-growing Asia Pacific market provides more incentive for GMFIU stock. Still, SPACs are inherently risky, so investors must conduct due diligence.
About Joshua Enomoto
His distinct writing style of distilling convoluted data into relatable and compelling narratives has earned him recognition among several investment-related publications.