InvestorPlace - Stock Market News, Stock Advice & Trading Tips

This morning, lifestyle brand and e-commerce company Hypebeast announced plans to go public with backing from some huge names. Per a report, the company is planning to merge with special purpose acquisition company (SPAC) Iron Spark I (NASDAQ:ISAA). Founded in 2005, Hypebeast has more than 26 million global followers. Now, this SPAC merger could lead to further expansion for the company.

What do you need to know about this big-name public offering?

Well, Iron Spark — the blank-check company set to merge with Hypebeast — hopes to bring the youth-centric brand to the Nasdaq in the third quarter of this year. Since its launch, Hypebeast has delivered consistently strong profit margins. The company predicts bringing in at least $112 million in revenue for its fiscal year which ended March 31.

Hypebeast is comprised of three divisions: HYPEMEDIA, HYPEMAKER and HBX. The divisions operate the company's media presence, "in-house creative production agency" and e-commerce platform, respectively.

This deal features a number of big-name backers. Some of these names include celebrities like Tony Hawk, Tom Brady and Kevin Durant. Forbes estimates that Hypebeast — which is already listed on the Hong Kong Stock Exchange — has a current market capitalization of about $211 million.

So, what else do you need to know about the high-profile Hypebeast SPAC merger?

Hypebeast SPAC Merger Set to Shake-Up IPO Season

Hypebeast appears to be the latest in the trend of SPAC mergers gaining popularity lately. SPAC mergers allow companies to go public by merging with current publicly traded companies. This process circumvents the often timely traditional initial public offering (IPO) procedure. Traditional IPOs can often take months or even years to conclude.

This news has clearly pleased Iron Spark investors. Currently, ISAA stock is up about 2% on the news.

Hypebeast seems to be following suit with Chinese "fast fashion" e-commerce company Shein, which recently secured a nearly $100 billion valuation. Hypebeast CEO Kevin Ma recently shared some kind words on the Iron Spark deal:

"We've built a loyal and passionate community who trust our curation across diverse lifestyle categories spanning fashion, arts, design, luxury, sports, technology, and more. Partnering with Iron Spark and entering the public markets in the US will propel us to the next level. With access to new capital and talent, we will expand our universe of content, commerce, and experiences in a way that strengthens our business and community."

On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

The post Hypebeast SPAC Merger: What to Know About the News Lifting ISAA Stock Today appeared first on InvestorPlace.