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Deals

Blank-check firm backed by former MGM Resorts CEO cuts IPO size

(Reuters) - A blank-check firm backed by the former head of MGM Resorts International MGM.N on Wednesday cut the size of its initial public offering, the latest in a line of blank-check firms to do so, indicating that the hot new method of listing may be losing its sheen.

Acies Acquisition Corp, which is backed by former MGM head James Murren, said in a filing that it now intends to raise $200 million in its IPO instead of the previously indicated $300 million. The firm reduced the number of units it was offering to 20 million from 30 million.

A blank check firm, or a special purpose acquisition company (SPAC), is a shell company that uses IPO proceeds to buy another company, in a deal that takes the private company public. It has emerged as a popular method of listing this year, with high-profile investors like Bill Ackman, Michael Klein and Chamath Palihapitiya raising billions through their SPACs.

But several SPACs have lowered the sizes of their IPOs in recent weeks, raising concerns over whether the blank-check frenzy is showing early signs of a slowdown.

Earlier in the week, a blank-check company backed by private equity firm Cerberus Capital Management downsized its IPO, while others SPACs Tekkorp Digital Acquisition and Yellowstone Acquisition Co also followed suit.

Reporting by Ambar Warrick in Bengaluru; Editing by Shailesh Kuber

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