ShiftPixy-backed SPACs aim to raise over $1 bln via U.S. listings

ShiftPixy

29/04/2021 12:11

April 29 (Reuters) - Staffing services company ShiftPixy Inc
 PIXY.O  is looking to raise a total of $1.25 billion through
four blank-check firms, according to regulatory filings on
Thursday. 
    The special purpose acquisition companies (SPACs),
TechStackery Inc, Vital Human Capital Inc and Industrial Human
Capital Inc, are looking to raise $250 million each through the
sale of shares and warrants on the New York Stock Exchange,
while Insurity Capital Inc has filed to raise around $500
million. 
    SPACs are shell companies, which raise funds through an
initial public offering to take a private company public through
a merger at a later date.
    Once confined to the backwaters of Wall Street dealmaking,
SPACs have surged in popularity over the past year as they allow
companies to sidestep a traditional IPO and the hassles and
scrutiny associated with it.
    The latest SPAC launches come in the middle of an unusually
slow period for blank-check dealmaking, which has been come
under regulatory scrutiny and a slump in investor demand that
has hit PIPE (private investment in public equity) rounds.
    The regulator is now also considering new guidance to rein
in growth projections made by listed blank-check companies and
clarify when they qualify for certain legal protections, Reuters
reported earlier this week.
    Alliance Global Partner was the sole book-running manager
for all the offerings. 
    

 (Reporting by Sohini Podder in Bengaluru; Editing by Amy Caren
Daniel)
 ((sohini.podder@thomsonreuters.com;))