Four SPACs backed by ShiftPixy slash U.S. IPO sizes

ShiftPixy

25/08/2021 12:39

Aug 25 (Reuters) - Four blank-check acquisition vehicles
backed by staffing services company ShiftPixy Inc  PIXY.O  cut
the size of their initial public offerings on Wednesday,
pointing to dimming investor appetite for such firms. 
    SPACs (special purpose acquisition companies), which raise
money from stock market listings with the promise of merging
with a private company and taking it public, became one of the
hottest trends on Wall Street last year. 
    The market, however, has experienced a chill in recent
months due to heightened regulatory pressure, saturated investor
appetite and lawsuits.
    Of the four SPACs, Firemark Global Capital Inc had targeted
the biggest raise of $500 million, when it first submitted its
paperwork in April. The company said it is now looking to raise
up to $150 million.
    The other firms — TechStackery Inc, Vital Human Capital Inc
and Industrial Human Capital Inc — are now aiming to raise $150
million each, compared with a target of $250 million each
earlier, according to their regulatory filings.
    All of the four blank-check firms are backed by ShiftPixy
Investments Inc, a wholly-owned subsidiary of ShiftPixy.
    Richard Branson's Virgin Orbit and self-driving technology
company Aurora have agreed to go public through SPAC mergers
this year. However, some high-profile deals, including the
proposed deal between Bill Ackman's SPAC and Universal Music
Group, have run into difficulties recently.  urn:newsml:reuters.com:*:nL1N2OV0A2
    
    
    
    

 (Reporting by Niket Nishant in Bengaluru; Editing by Amy Caren
Daniel)
 ((Niket.Nishant@thomsonreuters.com;))