GLED merger with Rongcheng Group Limited
Rongcheng Group Limited (Hong Kong) — Rongcheng is an integrated waste sorting service provider delivering end-to-end consultation, implementation and training solutions.
Announced 1 May 2026.
Rongcheng Group Limited is a Hong Kong-based integrated waste sorting service provider operating in the environmental services and waste management sector. The company delivers end-to-end "consultation–implementation–training" solutions to enterprises and a variety of customers, including government and enterprise clients. Rongcheng leverages a network of local consulting and recycling partners alongside AI-powered sorting technology to offer integrated policy advisory, advertising advisory, and project execution services. The company describes itself as a full-cycle waste sorting solutions provider delivering its services across global markets, using AI-driven sorting technologies and cross-border resource networks to optimize waste management infrastructure. Rongcheng is incorporated as a Cayman Islands exempted company and is headquartered in Hong Kong.
The company's leadership includes Chen Li, who serves as a Director and has been identified as Chief Executive Officer in certain communications, and Ping Zhang, who serves as Chairman and CEO of the SPAC partner GalaxyEdge Acquisition Corporation. The post-merger governance structure is expected to feature a five-member board, with four directors designated by Rongcheng and one by GalaxyEdge, and Rongcheng's officers are expected to become the officers of the combined publicly traded entity. Detailed information about the company's founding date, prior funding rounds, or revenue figures was not disclosed in the available sources, though the merger agreement implies a pre-money equity valuation of approximately $350 million.
Rongcheng is going public via a SPAC merger with GalaxyEdge Acquisition Corporation (NYSE: GLED, GLEDR, GLEDU), a Cayman Islands-exempted special purpose acquisition company. The transaction, governed by an Agreement and Plan of Merger dated May 1, 2026, employs a two-step structure in which GalaxyEdge merges into a wholly owned subsidiary called Rongcheng Global Limited (the Purchaser), which survives as the publicly listed company, while a separate merger subsidiary merges with and into Rongcheng, leaving Rongcheng as a wholly owned subsidiary of the Purchaser. Rongcheng shareholders will receive an aggregate of 35,000,000 Purchaser ordinary shares valued at $10.00 per share, reflecting the $350 million pre-money equity valuation. The deal was preceded by a non-binding letter of intent signed on March 18, 2026, and has been approved by the boards of both companies, though it remains subject to shareholder approvals, SEC effectiveness of a Form F-4 registration statement, stock exchange listing approval, and other customary closing conditions.
The rationale for choosing the SPAC path is articulated by Rongcheng's leadership as a means of validating its integrated business model and accelerating expansion. Chen Li stated that becoming a public company would enhance Rongcheng's credibility and provide access to diversified sources of capital to scale operations and deepen its competitive moat. GalaxyEdge's CEO Ping Zhang emphasized the commitment to pairing the public market platform with an operator capable of execution, noting Rongcheng's established customer relationships and positioning to capitalize on significant opportunities ahead. The transaction includes 180-day lock-up agreements for certain shareholders and the sponsor, Equinox Capital Solutions Limited, as well as amended and restated registration rights to facilitate post-closing liquidity, all designed to support trading stability and investor confidence in the combined entity.
Structure & dilution
SEC-primary termsThe headline number ignores the shares that did not pay $10 — the founder promote, PIPE stock and warrants. This is the same deal with all equity claims counted.
Effective equity counts every claim on the post-close company at $10.00 — rollover, public shares, the founder promote and the PIPE. The headline counts only the target.
- Sponsor promote
- 26%
- Break fee
- $1M
- Exchange ratio
Each Rongcheng ordinary share (other than excluded shares) is cancelled in exchange for its applicable portion of 35,000,000 Purchaser ordinary shares valued at $10.00 per share, based on an agreed pre-money equity valuation of $350,000,000more ▾less ▴
No PIPE or committed financing disclosed. The Merger Agreement only references possible PIPE financing generically (Company Net Value 'shall not be adjusted for ... Private Investment in Public Equitymore ▾less ▴
Lock-up Period ” means the period beginning on the Closing Date and ending on the earlier of: (A) the date that is one hundred eighty (180) days after the Closing Date; or (B) the date on which the Purchaser completes a liquidation, merger, share exchange or other similar transaction that results in all of the Purchaser’s public shareholders having the right to exchange their ordinary shares for cash, securities or other propertymore ▾less ▴
Why headline and effective values differ is covered in headline vs effective deal value, in plain English.
The target: Rongcheng Group Limited
from 8-KThe business actually being bought — described from SEC primary filings, with projections labelled as projections.
Rongcheng is an integrated waste sorting service provider delivering end-to-end consultation, implementation and training solutions. Headquartered in Hong Kong, it works through a network of local consulting and recycling partners alongside AI-powered sorting technology to offer integrated policy advisory, advertising advisory and project execution.
Rongcheng Group Limited — every SPAC that has bid for it, and its listed peers
Expensive or cheap?
A price only means something next to what the same kind of business costs on the stock market. This divides what the buyers are paying by what Rongcheng Group Limited actually sells, and sets the answer against its closest listed comparables — or says plainly when that cannot be done.
SpacBrain’s read on the price
No multiple can be computed
We hold no revenue figure in US dollars for Rongcheng Group Limited, so there is nothing to divide the price by and no multiple can be struck. It is not recorded as pre-revenue either — this is a gap in our record, not a finding that the company has no sales. The deal values it at $505.3M regardless.
We have not extracted a revenue figure for this company from its filings yet. That is our gap, not a statement about the business.
Post-dilution equity (net debt unknown).
Not extracted from the filings yet.
Not computable — no revenue figure has been extracted from the filings yet.
No listed comparable carries a revenue multiple we can use.
What qualifies the figures above
- Struck on the post-dilution value of $505.3M, not the announced $350M — new shares handed to the sponsor, warrant holders and the PIPE are part of what public buyers are really paying.
- The target's cash and debt are not in the filings we have, so this is an equity value used as a stand-in for enterprise value.
- ICFI, RSG, HHZK, CWST, ZTG, LICN, KOEI, CLH, SEAH, WM, QRHC, OIO have no revenue to divide by, so they are shown but left out of the peer median.
The 12 listed companies it is measured against, and why
- ICFIno revenue multiple
Direct comp: Management Consulting Services; shares implementation, policy, advisory, consulting, technology, services with the target's own description; forward EV/Sales 1.0x.
- RSGno revenue multiple
Direct comp: Environmental Services & Equipment (NEC); mega-cap ($65.3bn); shares waste, recycling, services, through, solutions, and with the target's own description; forward EV/Sales 4.7x.
- HHZKno revenue multiple
Direct comp: Management Consulting Services; shares implementation, consulting, hong, services, and with the target's own description; no forward EV/Sales published — counted as a peer, excluded from the median.
- CWSTno revenue multiple
Direct comp: Waste Management, Disposal & Recycling Services; mid-cap ($6.2bn); shares waste, recycling, integrated, service, solutions, services with the target's own description; forward EV/Sales 3.4x.
- ZTGno revenue multiple
Operational comp: Business Support Services (NEC) (Industrials group); micro-cap ($39m); shares consultation, services, technology, and with the target's own description; no forward EV/Sales published — counted as a peer, excluded from the median.
- LICNno revenue multiple
Operational comp: Accounting & Tax Preparation (Industrials group); micro-cap ($46m); shares consultation, training, services, and with the target's own description; no forward EV/Sales published — counted as a peer, excluded from the median.
- KOEIno revenue multiple
Operational comp: Waste Management, Disposal & Recycling Services; shares waste, recycling, end, technology, solutions, services with the target's own description; no forward EV/Sales published — counted as a peer, excluded from the median.
- CLHno revenue multiple
Operational comp: Environmental Services & Equipment (NEC); large-cap ($12.5bn); shares waste, recycling, end, network, provider, services with the target's own description; forward EV/Sales 2.9x.
- SEAHno revenue multiple
Operational comp: Waste Management, Disposal & Recycling Services; shares waste, recycling, solutions, through, and with the target's own description; no forward EV/Sales published — counted as a peer, excluded from the median.
- WMno revenue multiple
Operational comp: Environmental Services & Equipment (NEC); mega-cap ($88.5bn); shares waste, recycling, provider, solutions, services, and with the target's own description; forward EV/Sales 4.3x.
- QRHCno revenue multiple
Operational comp: Waste Management, Disposal & Recycling Services; micro-cap ($39m); shares waste, recycling, provider, services, and with the target's own description; forward EV/Sales 0.4x.
- OIOno revenue multiple
Operational comp: Waste Management, Disposal & Recycling Services; micro-cap ($170m); shares waste, recycling, solutions, through, services, and with the target's own description; no forward EV/Sales published — counted as a peer, excluded from the median.
Which companies count as comparable is our judgement, written out above so you can disagree with it. The median is what these shares happened to trade at on the date given — not a price anyone is offering for this deal.
In plain English
No floor / floorlessthe cash guarantee is gone — the price is unprotected
A SPAC's downside protection is not the cash in trust; it is your right to demand that cash. Once the redemption window closes, the cash stays with the company and the share can trade anywhere.
Dilutionhow much of the company new shares take from you
Sponsor promote, PIPE shares, warrants and rights all issue stock that did not pay $10 for it. The headline deal value is before that; the effective value is after.
Pro-forma equitywhat the company is valued at once the deal closes
The combined company's equity value assuming the announced terms and the redemptions that have actually happened.
De-SPACthe day the SPAC becomes the real company
The shares stop being a claim on a pot of cash and start being equity in an operating business. Roughly 80% of recent de-SPACs traded below $10 within a year.
Outside datethe contractual long-stop for closing the deal
A deadline between the SPAC and its target, not between the SPAC and you. It confers no right to cash, which is exactly why it must never be counted as a redemption window.