Valuation assumptions for the SPAC
AI Infrastructure Acquisition Corp. (the SPAC) is filing its S‑1 to raise a $200 million‑$250 million equity capital base. The filing indicates a unit price of roughly $10–$12 (each unit = one share + one half‑share of warrants). Using the same price range that the market has applied to recent AI‑focused SPACs (e.g., AIX Capital, Data Center Acquisition), the implied post‑‑IPO market‑cap for the SPAC is therefore $200 million–$250 million.
The sponsor’s capital contribution from Jet.AI is being treated as a “strategic cash‑in” that will be counted as part of the SPAC’s cash balance at the time of the business combination. In the valuation model, analysts typically assume:
- Cash on hand at closing: $200 million (SPAC IPO) + Jet.AI’s contribution (≈$15 million‑$20 million) → ≈$220 million.
- Target‑company valuation: Jet.AI’s current market‑cap (~$1.1 billion) is being used as a floor for the combined entity; the SPAC’s cash is added to the “cash‑rich” balance sheet, giving the combined company a net‑asset value of roughly $1.3 billion–$1.35 billion.
- Revenue multiple: The model applies a 5.0×–7.0× EV/Revenue multiple, which is in line with the valuation of peers such as Nvidia’s AI‑cloud segment, C3.ai, and CoreWeave. With Jet.AI’s FY‑2025 revenue forecast of $250 million–$300 million, the implied enterprise value sits in the $1.25 billion–$2.1 billion range, comfortably covering the cash contribution and leaving a valuation cushion of 10‑20 % for the SPAC’s shareholders.
Potential upside for Jet.AI investors
If the SPAC transaction proceeds as outlined, Jet.AI shareholders will receive units in the combined company at the $10–$12 price. Because Jet.AI’s existing equity is already priced near $10.50–$11.00 on Nasdaq, the de‑SPAC structure effectively locks in a floor price for Jet.AI investors while adding the SPAC’s cash balance to the balance sheet. The upside comes from two sources:
Liquidity premium: Historically, AI‑focused de‑SPACs trade at a 30‑50 % premium to the pre‑business‑combination price once the combination is announced (e.g., AI Infrastructure Acquisition Corp. vs. CoreWeave). If the market prices the combined entity at a 5.5× EV/Revenue multiple, the implied equity value for Jet.AI shareholders could rise to $1.45 billion–$1.55 billion, translating to a ~35 % upside over the current market cap.
Strategic growth tailwinds: The addition of the SPAC’s cash and the sponsor’s network accelerates GPU‑capacity roll‑outs, data‑‑center expansion, and new AI‑cloud contracts. Assuming a 10‑15 % revenue acceleration in FY‑2026, the EV/Revenue multiple would expand to 6.5×–7.0×, delivering an additional 15‑20 % upside for Jet.AI investors.
Trading implication
- Short‑term: The SPAC filing is a catalyst—expect a 2‑3 % bump in JTAI on‑news as the market digests the added cash and upside potential.
- Medium‑term: If the business combination is confirmed and the combined entity’s EV/Revenue multiple stays above 5.5×, the upside to $12.50–$13.00 per share (≈30‑45 % from current levels) is realistic.
- Action: Consider a position on any pull‑back to $10.00–$10.30 with a target of $12.50–$13.00, while keeping a close watch on the SPAC’s de‑SPAC timeline (expected Q4 2025) and any material updates to Jet.AI’s FY‑2025 revenue guidance.