- Oops!Something went wrong.Please try again later.
(Reuters) - Four blank-check acquisition vehicles backed by staffing services company ShiftPixy Inc 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.
(Reporting by Niket Nishant in Bengaluru; Editing by Amy Caren Daniel)