SPACs find fresh momentum

SPECIAL-PURPOSE acquisition companies, better known as SPACs, are staging an unexpected comeback.

According to a Reuters report, a wave of anticipated blockbuster stock market listings is creating new opportunities for SPACs as smaller companies look for alternative routes to public markets without having to compete for investor attention against some of the world’s most highly anticipated flotations.

With initial public offerings (IPOs) from heavyweights such as SpaceX, Anthropic and OpenAI expected to dominate headlines and attract vast amounts of investor capital, market participants say many smaller firms are increasingly considering SPAC mergers as a practical way to reach public markets.

The renewed interest marks a notable shift for a segment of the market that many had written off following its dramatic rise and fall during the pandemic years.

While the speculative frenzy that characterised the SPAC boom has faded, Reuters reports that a more mature market is now emerging, supported by investors and sponsors looking for efficient ways to deploy capital.

“A parade of mega-IPOs could make life harder for smaller issuers with the giant names soaking up headlines, analyst attention, institutional bandwidth, and a meaningful share of available capital,” Michael Ashley Schulman, partner at financial advisory firm Cerity Partners, tells Reuters.

“An SPAC could open a quick side entrance,” he adds.

Deal activity rises

SPACs are listed shell companies that raise money from investors and then seek a private company to acquire.

Through the merger, the private company becomes publicly traded without following the traditional IPO process.

Unlike a conventional IPO, the transaction does not necessarily involve raising new capital from public investors at the time of listing.

The structure became hugely popular during the pandemic, when hundreds of blank-cheque companies were launched in rapid succession. However, many later struggled to complete acquisitions, while others delivered disappointing returns after mergers were completed.

As a result, investor enthusiasm cooled sharply and SPAC activity fell well below its peak.

Now, Reuters reports, deal activity is climbing again.

Data from Dealogic show that 44 SPAC mergers worth US$36.9bil have been announced globally so far this year, compared with 33 deals worth US$15bil during the same period a year ago.

At the same time, a significant amount of capital remains available. Research firm SPAC Research estimates that, as of June 17, 2026, 359 SPACs collectively held US$56.8bil that had already been raised from investors and was waiting to be deployed into acquisitions.

That growing pool of available funds is creating pressure for SPAC sponsors to find suitable targets before their vehicles reach expiry deadlines and are forced to return money to shareholders.

Several sectors appear particularly well positioned to benefit.

Reuters cites market experts who identified energy, defence, critical minerals, nuclear power, space technology and cryptocurrency businesses as likely candidates for SPAC transactions.

Smaller international companies seeking access to US capital markets are also attracting interest.

Confidence returns

The timing is significant. SpaceX has already intensified competition for investor attention after launching what Reuters describes as a record-breaking IPO that values the company at roughly US$1.8 trillion.

Meanwhile, artificial intelligence rivals Anthropic and OpenAI have confidentially filed for US listings that are expected later this year.

Those offerings are widely expected to rank among the largest and most closely watched public listings in recent history.

For smaller companies, that could present a challenge.

Michelle Gasaway, a partner in the capital markets practice at law firm Skadden, Arps, tells Reuters that interest in SPAC transactions has increased compared with two years ago.

She points to greater flexibility around timing and the ability to negotiate valuations directly rather than relying entirely on market demand during an IPO roadshow.

Those advantages, she says, make SPACs attractive for companies that do not want to compete for attention in an increasingly crowded IPO environment.

Some analysts believe the trend could strengthen as more major listings approach.

Lukas Muehlbauer, research associate at IPOX Research, tells Reuters that some companies which might previously have pursued a conventional IPO could now favour a SPAC merger instead.

He notes that many existing SPACs still need to complete acquisitions before reaching liquidation deadlines, creating a large amount of capital actively searching for transactions.

The broader issuance figures suggest confidence is already returning.

According to Dealogic data cited by Reuters, 145 SPACs listed in the United States in 2025, marking the highest annual total since 2021, when the market was at its peak.

The momentum has continued into 2026. Through June 15, 107 SPACs had listed on US exchanges, up sharply from 57 during the same period last year.

The revival has also attracted several high-profile sponsors back into the market, including Chamath Palihapitiya, once nicknamed Wall Street’s “SPAC king” because of his prominent role during the boom years.

One banking industry source tells Reuters that conversations around potential SPAC mergers have increased significantly this year, particularly among companies seeking valuations below US$3bil.

Many are now evaluating both traditional IPOs and SPAC mergers as viable routes to public markets.

Challenges remain, however.

Questions remain

High redemption rates continue to pose a risk. Investors often have the option to withdraw their money from a SPAC’s trust account once a merger is announced, which can reduce the amount of cash ultimately available to the target company.

Even so, supporters argue that speed and certainty remain compelling advantages.

For companies trying to capitalise on favourable market conditions, timing can be everything.

IPO windows can open and close quickly, with market volatility capable of disrupting offerings even at advanced stages of preparation.

“If sentiment is there, a SPAC can be a very efficient way to go public. It can happen in a matter of weeks, and you can raise capital in a matter of days,” Dynamix chief executive Andrejka Bernatova tells Reuters.

Recent transactions illustrate that renewed momentum.

In March, Controlled Thermal Resources agreed to go public through a US$4.7bil SPAC merger, while Taiwanese battery manufacturer ProLogium Technology struck a US$3.8bil blank-cheque deal.

For many companies, Reuters reports, that combination of speed, predictability and access to public markets is becoming increasingly attractive as Wall Street prepares for a crowded calendar of headline-grabbing IPOs.