Poster sizes

Four ShiftPixy-Backed SPACs Cut U.S. IPO Sizes

The Wall Street sign in front of the New York Stock Exchange in Manhattan in New York, New York, October 26, 2020. REUTERS/Mike Segar

Join now for FREE unlimited access to Reuters.com

Register

Aug 25 (Reuters) – Four blank check acquisition vehicles backed by staffing services firm ShiftPixy Inc (PIXY.O) downsized their IPOs on Wednesday, indicating less appetite investors for these companies.

SPACs (Special Purpose Acquisition Companies), which raise funds from IPOs with the promise of merging with a private company and taking it public, have become one of the hottest trends on Wall. Street last year.

The market, however, has seen a cooling in recent months due to increased regulatory pressure, saturated investor appetite and lawsuits.

Join now for FREE unlimited access to Reuters.com

Register

Of the four SPACs, Firemark Global Capital Inc had targeted the biggest raise of $500 million, when it first submitted its documents in April. The company said it is now looking to raise up to $150 million.

The other companies — TechStackery Inc, Vital Human Capital Inc and Industrial Human Capital Inc — are now aiming to raise $150 million each, up from a target of $250 million each previously, according to their regulatory filings.

All four blank check companies are backed by ShiftPixy Investments Inc, a wholly owned subsidiary of ShiftPixy.

Richard Branson’s Virgin Orbit and standalone tech 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 recently run into trouble. Read more

Join now for FREE unlimited access to Reuters.com

Register

Reporting by Niket Nishant in Bengaluru; Editing by Amy Caren Daniel

Our standards: The Thomson Reuters Trust Principles.