Thomas Dundon, co-founder of Santander Consumer USA, who abruptly cashed in more than $900 million worth of stock in July and stepped down as chief executive, on Monday filed registration documents for a $400 million IPO to fund a new company, Dundon Capital Acquisition.
The Dallas-based company plans to offer 40 million shares, valued at $10 per share. Dundon Capital Acquisition will apply to list on NASDAQ, “on or promptly after the date of this prospectus,” according to SEC documents.
In addition to Dundon, the company’s management is led by another former SCUSA executive, John Zutter. He is the former executive vice president of corporate finance at SCUSA, and now serves as the chief financial officer at Dundon Capital, the documents said.
Dundon Capital says it intends to raise money to acquire existing companies. “Our acquisition and value creation strategy will be to identify, acquire and, after our initial business combination, to build a company in an industry or sector that complements the experience of our management team and can benefit from our operational expertise,” the document says.
Following a 20-year career, Dundon left SCUSA in July to pursue new opportunities, according to a company announcement. The company said it was exercising its previously negotiated agreement to buy out all of Dundon’s shares in the company. That represented about 9.7% of SCUSA’s common stock, with an estimated worth of more than $900 million at the time.
Dundon’s separation agreement with SCUSA calls for him to remain as a SCUSA director for at least a year, according to SCUSA’s quarterly report.