Apollo-backed SPAC Looks To Raise $250 Million In U.S. IPO

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A blank-check company backed by private equity firm Apollo Global Management Inc is looking to raise $250 million in a U.S. initial public offering, the company said on Monday.

Spartan Acquisition Corp. II is aiming to sell 25 million units at $10 apiece, it said in a statement, adding it plans to use the proceeds to invest in a business focused on energy transition and sustainability.

The special acquisition purpose company (SPAC) had previously expected https://www.reuters.com/article/us-spartan-acquisition-ipo-idUSKBN26U2LS to raise up to $400 million in its IPO.

A SPAC is a shell company that uses IPO proceeds to buy another company, typically within two years, in a merger that will take the acquired company public. Investors are not notified in advance on what company the SPAC will buy.

SPACs have emerged as a popular IPO alternative for companies this year, providing a path to going public with less regulatory scrutiny.

Another Apollo-backed SPAC, Spartan Energy Acquisition Corp, said in July it would take electric-car maker Fisker Inc public at a valuation of $2.9 billion.

Citigroup, Credit Suisse, Cowen and Morgan Stanley are among the book-running managers for Spartan Acquisition Corp. II’s offering.

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