Apollo-backed SPAC looks to raise $250 mln in U.S. IPO

Ark Solutions

23/11/2020 13:37

Nov 23 (Reuters) - A blank-check company backed by private
equity firm Apollo Global Management Inc  APO.N  is looking to
raise $250 million in a U.S. initial public offering, the
company said on Monday.
    Spartan Acquisition Corp. II  IPO-SPAT.N  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.  urn:newsml:reuters.com:*:nGNX3ZWSTF
    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  FSR.N 
 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.

 (Reporting by Noor Zainab Hussain in Bengaluru; Editing by
Aditya Soni)
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