Strategic communications and advisory firm ICR oday released its January 2024 SPAC Market Update & Outlook report.
In 2023, the SPAC market worked through the issuance and deal-making excess of 2020 and 2021, ICR said in a press release. There were 32 SPAC IPOs priced as investors placed greater importance on sponsors with a track record of success. The average SPAC IPO size declined to $125 million, down 21% from 2022, as sponsors acknowledged lower median deal values; 14% of mergers valued companies at $1 billion or higher, down from 50% last year. Additionally, merger activity was steady at approximately 24 closed deals per quarter and liquidations decelerated.
“Despite the challenging backdrop, the SPAC market continues to be a viable pathway to the public markets, but it certainly isn’t ideal for every company,” said Don Duffy, president of ICR. “SPAC transactions can provide optionality for private equity or venture capital backed companies that may not be viewed as ideal IPO candidates. We’re also seeing increased interest in carve-outs from existing companies and foreign-listed or domiciled companies using the SPAC route to access the US markets.” Read more.
