April 12 (Reuters) - Lionsgate Studio raised its private investment in public equity (PIPE) amount to $225 million ahead of its merger with Screaming Eagle Acquisition, the special purpose-acquisition company (SPAC) firm disclosed in a regulatory filing on Friday.

The blank-check deal was initially expected to raise $175 million in PIPE financing for Lionsgate from mutual funds and other investors.

Through PIPE deals, SPACs raise additional funds from private investors, including hedge funds and institutions, in exchange for shares before the deal is completed.

While an upsize in a PIPE deal can signal strong investor confidence and improved liquidity, it may also result in dilution for existing shareholders.

Lionsgate had last year agreed to spin off its studio in a deal valued at about $4.6 billion, including debt, to create a new public firm for its film and television assets, which include about 18,000 titles.

The amount of proceeds expected to be delivered to Lionsgate has also been upsized to between $350 million and $409.5 million, from $350 million previously, the filing showed. (Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Shailesh Kuber)