Oct 1 (Reuters)An affiliate of private equity giant Apollo Global Management Inc APO.N is looking to raise $750 million through an initial public offering for a new blank-check company.

Apollo Strategic Growth Capital said on Thursday it would offer 75 million units at $10 apiece. (https://refini.tv/3l97JKh)

Each unit would represent one ordinary share and one-third of a warrant. One whole warrant would give the holder the right to buy an ordinary share at an exercise price of $11.50 per share.

A blank-check company, also known as a special purpose acquisition company (SPAC), is a shell company that uses capital raised through an IPO to buy a private company, typically within two years. The deal then takes the private company public.

A number of high-profile investors such as Bill Ackman, Chamath Palihapitiya and Michael Klein have raised billions through their SPACs this year. Ackman’s Pershing Square Tontine Holdings Ltd PSTH.N raised $4 billion in its IPO in July, making it the largest SPAC IPO.

Reuters also reported in September that Riverstone Holdings LLC, one of the oil and gas sector’s largest private equity investors, is planning a blank-check acquisition company that will buy a business in the clean energy industry.

Apollo Strategic’s units would be listed on the New York Stock Exchange under the symbol “APSG.U”.

The SPAC is being backed by APSG Sponsor LP, an affiliate of Apollo Global Management.

Citigroup Global Markets, Credit Suisse and Goldman Sachs are the underwriters for the offering.

(Reporting by Niket Nishant in Bengaluru; Editing by Maju Samuel)

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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(Bloomberg) — The first exchange-traded fund to track blank check companies will make its trading debut Thursday, giving investors a chance to make a concerted bet on one of the hottest areas of the stock market.



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The Defiance NextGen SPAC IPO ETF begins trading on the New York Stock Exchange under the ticker SPAK, according to a press release from the firm. The new fund will primarily track shares of companies that listed on exchanges by merging with special purpose acquisition companies, rather than those that held a traditional initial public offering. It will also track SPACs that have not yet executed an acquisition.

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Concerns remain over whether the SPAC market is large enough to support an ETF portfolio, even after a record-breaking year that has seen over $41 billion raised so far. SPAK seeks to counter that worry by weighting its holdings according to market value. That will give extra exposure to shares of SPACs that have surged after they bought a private company, effectively taking it public. More than 80% of the ETFs holdings will be occupied by the likes of DraftKings Inc. and Virgin Galactic Holdings Inc., while only 20% will be weighted toward newly created shells that have yet to make a purchase and have no operations.

“It includes the entire ecosystem without picking winners and losers,” Defiance ETFs Chief Executive Officer Matthew Bielski said in an interview. “The biggest companies have the biggest exposure, so there’s not a liquidity issue.”

Blistering IPO Market Is Rekindling Dot-Com Era Froth Fears

SPACs have exploded in popularity this year as a way for purchasers to avoid the costly and time-consuming IPO process that for a time grew more difficult thanks to unprecedented volatility. Instead, the company sells to