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Four SPACs supported by ShiftPixy are shortening US IPO sizes

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Aug 25 (Reuters) – Four blank check acquisition vehicles backed by recruitment firm ShiftPixy Inc (PIXY.O) reduced the size of their IPO on Wednesday, suggesting investors are dampening appetites for such companies.

Special Purpose Acquisition Companies (SPACs), which raise money from listings with promises to merge with a private company and go public, became one of the hottest trends on Wall Street over the past year.

However, the market has seen a slowdown in recent months due to heightened regulatory pressures, satiated investor hunger and lawsuits.

Of the four SPACs, Firemark Global Capital Inc was aiming for the largest capital increase of $ 500 million when filing its filing in April. The company now plans 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 to a previous target of $ 250 million each, according to their regulatory filings.

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

Richard Branson’s Virgin Orbit and the self-driving technology company Aurora have agreed to go public this year through SPAC mergers. However, some high profile deals, including the proposed deal between Bill Ackmans SPAC and Universal Music Group, have gotten into trouble lately. Continue reading

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

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