Alan Mnuchin-backed SPAC to raise $400 million via U.S. IPO

(Reuters) – Veteran investment banker Alan Mnuchin plans to raise $400 million for a blank-check firm through an initial public offering in the United States, regulatory filings on Wednesday showed.

Falcon Capital Acquisition Corp II, a special purpose acquisition company, or SPAC, will sell 40 million units, consisting of shares and warrants, on the Nasdaq Capital Market, priced at $10 per unit.

Mnuchin, brother of former U.S. Treasury Secretary Steve Mnuchin, is the founder of New York-based merchant bank Ariliam Group and a former vice president of Goldman Sachs. He also founded AGM Partners LLC, a New York-based investment bank.

The first SPAC, Falcon Capital Acquisition Corp, took digital health startup Sharecare Inc public in a $3.9 billion deal last month.

SPACs are shell companies that raise equity to take a private company public through a merger at a later date, allowing such companies to sidestep a traditional IPO to enter public markets.

Goldman Sachs & Co LLC is the lead underwriter for the offering.

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