A blank check company backed by former KKR & Co Inc dealmaker Jim Momtazee said on Tuesday it plans to raise $500 million in its initial public offering.

The blank check company called Montes Archimedes Acquisition Corp will list about 50 million units at an offering price of $10 apiece and the units will consist of Class A common stock and half of one redeemable warrant, it said in a filing here.

The proposed IPO amount is a placeholder figure set to estimate the registration fee, and the SPAC could eventually raise a higher amount.

A SPAC, or a blank check company, is a shell company that uses IPO proceeds to buy another company, typically within two years of listing. High profile investors such as Bill Ackman and Michael Klein have raised billions through their SPACs this year.

SPACs have emerged as a major driver of IPOs lately, led by high-profile deals for the likes of space tourism company Virgin Galactic Holdings Inc and fantasy sports and gambling company DraftKings Inc.

Momtazee, who spent 21 years at KKR and led its Americas healthcare team for a decade, last month formed his own buyout firm Patient Square Capital with former KPMG partner Maria Walker to pursue deals in the healthcare sector.

Source: Reuters

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