NEW YORK--(BUSINESS WIRE)--ICR, a leading strategic communications and advisory firm, today released its 2019 Year of SPACs report, a year end update on the SPAC market. In 2019, 72 SPACs raised approximately $15.3 billion globally, exceeding 2018 issuance of $12.7 billion. As of year-end, nearly 145 public SPACs globally hold more than $24 billion in aggregate cash.
Funds raised by U.S. SPACs in 2019 totaled $13.5 billion, up more than 25% compared to the $10.8 billion raised in 2018. SPACs also took an increased share of total IPO proceeds in 2019, commanding 28% compared to 20% in 2018.
“We continue to see strong SPAC issuance compared to traditional IPOs,” said Don Duffy, President of ICR. “After reaching one-fifth of the total raised by U.S. IPOs in 2018, SPACs continued their run, eclipsing one quarter of the IPO market in 2019, and with the many advantages of the structure this trend can certainly continue in 2020. Importantly, institutional investor interest in SPAC merger transactions is growing as the size and quality of the companies going public through a SPAC merger continues to improve.”
A successful listing of a SPAC signals the start of an approximately 18-24 month period for it to complete a successful business combination. The de-SPAC process begins once the SPAC announces its proposed acquisition, representing the start of a high-stakes, condensed timeline to complete the transaction.
“Once a SPAC announces a merger partner, the de-SPAC process allows for enhanced transparency and increased access to management compared to a typical IPO,” said Phil Denning, Partner at ICR. “In addition, an important, but often overlooked, aspect of the communications strategy is to begin to transition the narrative from the SPAC sponsor’s messaging to the go-forward business strategy and to ensure the merger partner has the infrastructure in place to succeed as a publicly traded company.”
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.
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 2019 Year of SPACs 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, San Diego and Beijing. Learn more at www.icrinc.com. Follow us on Twitter at @ICRPR.