A blank-check company backed by private equity firm Apollo Global Management Inc. is looking to raise $250 million in a U.S. IPO, the company said on Nov. 23.

Spartan Acquisition Corp. II is aiming to sell 25 million units at $10 apiece, it said in a statement, adding it plans to use the proceeds to invest in a business focused on energy transition and sustainability.

The special acquisition purpose company (SPAC) had previously expected to raise up to $400 million in its IPO.

A SPAC is a shell company that uses IPO proceeds to buy another company, typically within two years, in a merger that will take the acquired company public. Investors are not notified in advance on what company the SPAC will buy.

SPACs have emerged as a popular IPO alternative for companies this year, providing a path to going public with less regulatory scrutiny.

Another Apollo-backed SPAC, Spartan Energy Acquisition Corp., said in July it would take electric-car maker Fisker Inc. public at a valuation of $2.9 billion.

Citigroup, Credit Suisse, Cowen and Morgan Stanley are among the book-running managers for Spartan Acquisition Corp. II's offering.