Ares Acquisition, a blank check company formed by Ares Management targeting a sustainable business, raised the proposed deal size for its upcoming IPO on Tuesday.
The New York, NY-based company now plans to raise $725 million by offering 72.5 million units at a price of $10. The company had previously filed to offer 60 million units at the same price. Each unit now contains one share of common stock and one-fifth of a warrant, exercisable at $11.50; each unit previously contained one-third of a warrant. At the revised deal size, Ares Acquisition will raise 21% more in proceeds than previously anticipated.
The company is led by CEO and Co-Chairman David Kaplan, co-founder and Partner of Ares Management and Co-Chairman of the Ares Private Equity Group, and Co-Chairman Michael Arougheti, co-founder and CEO of Ares Management and Co-Chairman of Ares Capital Corporation. The company plans to target an established business with scale, attractive growth prospects, and sustainable competitive advantages, focusing on those in North America, Europe, or Asia. While it has not selected a target industry, the company does not plan to target the fossil fuel energy industry, including the upstream, midstream and energy services sub-sectors.
Ares Acquisition was founded in 2020 and plans to list on the NYSE under the symbol AAC.U. UBS Investment Bank, Citi, Morgan Stanley and Barclays are the joint bookrunners on the deal.
