U.S. SPAC market regains momentum as mega-IPO wave crowds out smaller listings

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SPAC market regains momentum

Highlights

Rising mega-IPOs from SpaceX, Anthropic, and OpenAI are shifting smaller issuers toward SPAC mergers to avoid competition for investor capital.
Global SPAC merger activity reached 44 deals worth $36.9 billion in 2024 versus 33 deals totaling $15 billion during the same period last year, per Dealogic.
U.S. SPAC issuance hit 145 new listings in 2025, the highest since 2021, with 359 vehicles holding $56.8 billion in undeployed capital as of June 17.

Mega-IPO pipeline revives SPAC appeal

As reported by Reuters, expected listings from companies such as SpaceX, Anthropic and OpenAI are pushing smaller issuers to consider SPAC mergers instead of traditional initial public offerings. Analysts and market advisers say these blank-check vehicles offer a faster route to market and can help companies avoid competing for investor attention and capital during a crowded IPO calendar.

SPACs allow private companies to go public by merging with a listed shell company rather than raising fresh money through a standard IPO. Michael Ashley Schulman, a partner at Cerity Partners, said a parade of mega-IPOs could absorb headlines, analyst coverage, institutional capacity and a significant share of available capital, making SPACs a practical side entrance for smaller issuers.

Michelle Gasaway, a partner in the capital markets practice at Skadden, Arps, said interest in SPAC transactions is higher than two years ago. She pointed to greater flexibility on timing and the ability to negotiate valuation privately rather than relying on public market demand in a crowded listing environment.

Issuance and deal values show stronger sentiment

Global SPAC merger activity is increasing this year, with 44 deals announced worth $36.9 billion, compared with 33 deals worth $15 billion at the same point last year, according to Dealogic data. Separate data compiled by SPAC Research shows that, as of June 17, 359 SPACs hold $56.8 billion in already raised capital that is still available for transactions.

Market specialists say the most likely candidates for SPAC deals include companies in energy, defense, critical minerals, nuclear, space and crypto, as well as smaller international firms seeking access to U.S. capital markets. Lukas Muehlbauer, a research associate at IPOX, said many companies that might have pursued a traditional IPO are now likely to consider SPAC mergers instead, partly because many existing vehicles still need to complete acquisitions before liquidation.

In the U.S., SPAC issuance rebounds sharply in 2025, with 145 blank-check companies going public, the highest annual total since 2021, according to Dealogic. Most of those vehicles have roughly two years to identify targets before they must liquidate and return capital to investors.

In our earlier article on record options trading in newly listed SpaceX (SPCX), we explained how the stock’s post-debut surge and elevated implied volatility drove unprecedented first-day options volume. We also highlighted the split between aggressive upside speculation and more defensive, income-oriented structures such as collars and put-selling, showing how investors were managing risk and monetizing volatility right after the listing.

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