Record-Breaking SPAC IPO Issuance in 2020 Out-Raised All Previous Years Combined
SPAC IPO issuance accelerated at a record pace in the fourth quarter of 2020, with 132 SPACs raising $39 billion, up from the $32 billion raised in the third quarter of 2020. The full year of 2020 was transformative for SPACs, with 248 IPOs raising over $83 billion. This strong full year and fourth quarter SPAC IPO activity resulted in 274 active public SPACs holding more than $86 billion in cash as of December 31, 2020. The SPAC IPO momentum is continuing in January 2021 with 90 SPAC IPOs as of January 29, compared to just eight SPAC IPOs in full first quarter of 2020.
ICR advised on more than 50 SPAC transactions in 2020, including the five best performing SPACs of the year, according to Investopedia.
“ICR’s role in SPAC transactions is to help drive optimal outcomes for our clients by preparing for and executing on critically-important and fully-integrated investor, analyst, and media marketing, communications, and awareness campaigns,” said Don Duffy, President of ICR. “We do this by assembling a hands-on team of industry-focused investor relations, public relations, and corporate governance experts to advise both the SPAC sponsor and the target company leading up to the deal announcement, during the de-SPAC process, and after the deal closing to ensure a smooth transition to life as a publicly listed entity.”
“The strong interest in SPAC IPOs is being driven by the private market’s desire for broader liquidity and exit options beyond a traditional IPO,” said Phil Denning, Partner at ICR. “With any rapidly developing financial instrument, as transaction volumes increase, so do the risks. We have seen a sharp increase in short attacks post-closing, that in many cases are being driven by poor or sloppy disclosure practices and a lack of public company readiness. Best practices start prior to announcing a transaction. SPACs and companies pursuing these transactions will continue to need expert advice. In addition, the SEC has already scrutinized select disclosures, a trend we expect to continue under the new administration.”
“Following the closing of SPAC mergers, we are proactively advising these newly-public companies regarding the complexities of the capital markets, including planning for additional financing transactions and/or liquidity events for the substantial amounts of equity that shareholders roll over into these transactions,” said Lee Stettner and Steve Parish, Co-Heads of Capital Markets at ICR Capital.
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 Q4 2020 SPAC Market Update report, please click here.
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 and Beijing. Learn more at www.icrinc.com. Follow us on Twitter at @ICRPR.
Brian Ruby, ICR, 203-682-8268, firstname.lastname@example.org