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Deals

Alex Rodriguez-backed SPAC looks to raise about $500 million in IPO

FILE PHOTO: Feb 23, 2017; Tampa, FL, USA; New York Yankees special advisor Alex Rodriguez talks with manager Joe Girardi (28) during spring training at George M. Steinbrenner Field. Mandatory Credit: Butch Dill-USA TODAY Sports

(Reuters) - A blank-check firm, backed by former New York Yankees slugger Alex Rodriguez and hedge fund Antara Capital, is aiming to raise about $500 million in its initial public offering (IPO), a regulatory filing showed on Thursday.

Slam Corp, a special purpose acquisition company (SPAC), said it would sell 50 million units, comprising shares and warrants, priced at $10 apiece in the IPO. (bit.ly/3aDoxoK)

A SPAC is a shell company that raises money in an IPO to merge with a privately held company, turning it into a publicly traded firm.

Slam Corp is backed by Rodriguez’s A-Rod Corp, which invests in startups and other companies.

Rodriguez, a 14-time All-Star in his major league career who is in a relationship with pop star and actress Jennifer Lopez, founded A-Rod Corp in 2003.

SPACs have emerged as a popular IPO alternative for companies, providing a path to going public with less regulatory scrutiny and more certainty over the valuation that will be attained and funds that will be raised.

Slam Corp said its Class A ordinary shares and warrants, comprising the units, will begin separate trading on Nasdaq under the symbols “SLAM” and “SLAMW”.

Goldman Sachs & Co. LLC and BTIG are the underwriters for the offering.

Reporting by Noor Zainab Hussain in Bengaluru; Editing by Ramakrishnan M.

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