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Laxman Pai, Opalesque Asia: Six SPAC IPOs raised just over $1 billion, the slowest quarter by deal count since the first quarter of 2017, as SPAC sponsors faced elevated redemption rates, deal terminations, and liquidations, said a study.
Even with fewer IPOs, seasoned sponsors raised more capital and opted for longer expiration terms, according to July 2023 SPAC Market Update & Outlook report by ICR, a strategic communications and advisory firm.
SPAC IPO proceeds increased modestly over Q1 2022 with the six SPAC IPOs completed raising an average of $186 million, up from an average IPO size of $82 million from the 11 SPAC IPOs in Q1 2023, it said.
Don Duffy, President of ICR said: "With primary issuance markets showing signs of opening, there is a substantial backlog of IPO candidates waiting to come to market. SPAC transactions allow quality companies to access the U.S. public markets sooner than they otherwise would waiting for the right IPO window."
"Redemption rates dropped slightly as targets' valuation and profitability become more compelling. The SPAC shareholder vote is just the beginning of the public market journey for a new public company. To unlock value for all stakeholders, SPACs require an advisor with experience across capital markets, investor relations, and public relations through the SPAC marketing process and beyond," Don added.
During Q2 2023, 10 companies completed SPAC mergers, down from 28 in Q1, and the slowest quarter for closed S...................... To view our full article Click here
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