Tuesday, March 21

Alan Mnuchin-backed SPAC scraps US IPO plans

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A blank-check firm backed by veteran investor banker Alan Mnuchin has withdrawn plans for a US initial public offering, according to a regulatory filing on Monday, joining a slew of such companies that have similarly canceled plans over the last few weeks.

Falcon Capital Acquisition Corp II, which had filed for an IPO in March last year, was looking to raise $400 million through the sale of 40 million units composed of shares and warrants.

SPACs, or special purpose acquisition companies, are listed entities with no operations which target a merger with a private company at a later date in an effort to take it public by sidestepping the hassles associated with a traditional IPO.

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A string of SPACs have filed to withdraw their IPO plans in recent weeks, including Brand Velocity Acquisition Corp which was backed by private equity firm Brand Velocity Partners and counted former NFL quarterback Eli Manning among its board of advisors.

TCG Growth Opportunities Corp, a SPAC raised by investment firm The Chernin Group to target a merger with consumer-oriented internet businesses, also withdrew from an IPO last week.

Mnuchin, a former vice president of Goldman Sachs, is the brother of former US Treasury Secretary Steve Mnuchin. He is the founder of New York-based merchant bank Ariliam Group. (Reporting by Sohini Podder in Bengaluru; Editing by Krishna Chandra Eluri)