NEW YORK – May 6, 2020 – ICR, a leading strategic communications and advisory firm, today released its May 2020 SPAC update, noting that as of April 30, 85 public SPACs globally hold more than $21 billion in cash and have not yet completed acquisitions.
In addition, ICR, IPO Edge, and Stifel Financial (NYSE: SF) hosted a webinar – “Can SPACs Capitalize on the Current Environment?” – with executives from Hennessy Capital Acquisition Corp. IV (NASDAQ: HCAC), Haymaker Acquisition Corp. II (NASDAQ: HYAC), FinTech Acquisition Corp. III (NASDAQ: FTAC), Bespoke Capital Acquisition Corp. (TSE: BC.U-TO, BKCQF), and Juniper Industrial Holdings (NYSE: JIH). The webinar covers topics such as the current COVID-19 market environment, industry-specific SPAC considerations, SPACs vs IPOs, and the de-SPAC process, and is available for on-demand viewing.
“During the de-SPAC process the management teams of the target and the SPAC have the ability to engage with the media and investors, unlike the constraints associated with a traditional IPO,” said Phil Denning, Partner at ICR. “Our webinar also demonstrated that there may be renewed interest in SPACs as a merger partner for a public company, something that would be very interesting as access to capital has gotten more constrained due to market volatility related to the pandemic. Lastly, the proxy advisory firms are now weighing in more frequently on these mergers as the size and institutional interest in these transactions grows. To be successful, SPACs need an experienced team of advisors that understands the de-SPAC process, the industry of the target business, the challenges related to announcing an acquisition, and the shareholder vote process.”
In the first quarter of 2020, 13 SPACs raised approximately $3.7 billion, exceeding Q1 2019 issuance of more than $3.35 billion. And despite no SPAC IPO activity between March 10 and April 21, six SPAC IPOs have priced since then.
“SPAC issuance has continued after several deals were delayed due to market volatility related to COVID-19,” said Don Duffy, President of ICR. “We are seeing larger SPACs driving interest from higher quality merger targets with exceptional institutional investor backing. The SPAC structure presents a more transparent way for investors to participate in an IPO. This isn’t an accident as high quality institutional investor interest in these transactions continues to grow.”
ICR is the largest advisor and communications consultant to SPACs, having completed dozens of transactions over the past decade. To obtain a copy of ICR’s May 2020 SPAC Update report please click here.
About ICR
Established in 1998, ICR partners with its clients to execute strategic communications and advisory programs that achieve business goals, build awareness and credibility, and enhance long-term enterprise value. The firm’s highly-differentiated service model, which pairs capital markets veterans with senior communications professionals, brings deep sector knowledge and relationships to more than 750 clients in approximately 20 industries. ICR’s healthcare practice operates under the Westwicke brand (www.westwicke.com). Today, ICR is one of the largest and most experienced independent communications and advisory firms in North America, maintaining offices in New York, Norwalk, Boston, Baltimore, San Francisco, San Diego and Beijing. Learn more at www.icrinc.com. Follow us on Twitter at @ICRPR.
Contact:
Brian Ruby, ICR, 203-682-8268, brian.ruby@icrinc.com
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