May 27, 2025
Why Are SPACs Surging?
We've been asked this question frequently in 2025: Why is the market enthusiastic for SPACs right now?
The broader market is volatile at the moment and the IPO climate has been challenging for most of the year. But retail remains enthusiastic for stocks, and a number of investment themes continue to garner speculative interest.
You can see on the chart below that SPAC front ends are racing forward at the fastest pace in three years.
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Some deals are getting a welcome reception from the market. We're even seeing a handful of deals that feature common stock PIPE financing rather than the heavily structured financing that teams needed back in 2023-2024.
There are some pretty straightforward reasons why sponsors are coming back to the market right now:
- Yields are down.
- Pre-deal warrant prices are up.
- IPO terms are friendlier to sponsors than they've been in years.
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SPAC yields (in green, above) have edged lower this year, which means investors are paying a higher price for the same common shares. When yields were 6% last fall, investors might pay $9.75 for a generic SPAC with $10 in trust and two years remaining. Now at 5% yields, those same shares could be worth closer to $9.90.
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Warrant prices are up. The SPAC Research Warrant Index measures the value of pre-deal SPAC warrants which have more than tripled in the past year off of all-time lows.
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And the market is giving sponsors more time to complete their deal, while requiring less trust overfunding. Back in 2022, the average SPAC sponsor was overfunding their trust at 102% and getting just over a year to close a deSPAC. Now, trust overfunding is down to almost zero, and sponsors are mostly getting 21 months or greater for their vehicle.
A generic SPAC IPO unit now delivers greater value from both common shares and warrants to investors, so sponsors are no longer required to overfund their trust account to satisfy investors.
Demand for SPAC front ends never went away, even through the toughest times for SPACs. But IPO conditions have gotten much easier for sponsors and supply has finally come rushing back.
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News From the Past Week
Deal News
Deal Closings & Approvals
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IPOs
| Name |
Ticker |
Raised ($mm) |
Sector |
Cash in Trust |
Coverage |
| Oyster Enterprises II |
OYSE |
220 |
General |
100.0% |
R |
| ProCap Acq |
PCAP |
220 |
General |
100.0% |
1/3 |
| Armada II |
AACI |
200 |
Technology |
100.5% |
1/2 |
| Cal Redwood |
CRA |
200 |
Media & Entertainment |
100.0% |
R |
| Pelican Acq |
PELI |
75 |
Technology |
100.0% |
R |
New S-1's
| Name |
Ticker |
Size ($mm) |
Underwriter |
Trust Funding |
Coverage |
| Cohen Circle II |
CCII |
220 |
Clear Street |
100.0% |
R |
| A Paradise |
APAD |
200 |
Cohen |
100.0% |
R |
| LightWave Acq |
LWAC |
150 |
BTIG |
100.3% |
1/2 |
| FIGX Capital |
FIGX |
131 |
Cantor |
100.0% |
1/2 |
| InFinT 2 |
* |
100 |
Roth Capital |
100.5% |
R |
Liquidations
None.
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Charter Extensions
Upcoming Meetings and Deadlines
- 5/30/2025 BSII World Media and Entertainment Universal Inc. approval meeting (merger outside date 7/10/2025)
- 5/30/2025 DIST Youlife International Holdings Inc. approval meeting
- 5/30/2025 WINV Xtribe approval meeting
- 5/30/2025 GMFI Charter extension meeting
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Disclosures: Information is provided for informational purposes only and should not be relied upon as the basis for any investment decision nor considered as a recommendation or solicitation to buy or sell any securities. Site administrators may hold and trade in SPAC securities without notice.
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Copyright © 2025 SPAC Research. All rights reserved.
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May 5, 2025
IPO Resurgence
After a years-long malaise, the SPAC market is showing encouraging signs of life in 2025.
April 2025 saw over $2.7bn of SPAC issuance, the highest number since February 2022.
- Five more IPOs have already raised over $1.2bn in the first two days of May.
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New S-1 Filings are also coming at a pace not seen in years.
- Fifty-four issuers have filed to raise over $10bn so far in 2025.
- More than half of registrations have come from repeat sponsors.
- Big names including Alec Gores and Michael Klein have returned to the market.
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We're also seeing a number of new deal announcements with committed equity financing attached.
- Five deals have signed up almost $600mm in common stock PIPE commitments in the past three months.
- Many others are trading above cash implying meaningful retention from trust.
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Despite the broader headwinds for capital markets, SPACs are enjoying a moment.
- It's hard to say if the enthusiasm comes from simply working through a backlog of zombie vehicles or overcoming years of negative sentiment.
- The results paint an unmistakably optimistic picture for SPACs in the coming months.
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News From the Past Week
Deal News
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Black Hawk Acquisition Corporation (BKHA) announced a deal to acquire Vesicor Therapeutics, a California-based early development stage biotechnology corporation focused on the development of p53-based cancer therapeutics delivered via precision-engineered microvesicles. The deal reflects an equity value of $70mm and is expected to close in Q4 2025.
Deal Closings & Approvals
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Iris Acquisition Corp (formerly IRAA) closed its acquisition of Liminatus Pharma on Wednesday 4/30/2025 with less than 1% of public shares remaining. Ordinary shares and warrants are now trading on the NASDAQ as “LIMN” and “LIMNW.”
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Alpha Star Acquisition Corp (ALSAF) shareholders approved the company’s acquisition of XDATA at a meeting Friday 5/2/2025 with less than 1% of public shares remaining. Ordinary shares and warrants are set to begin trading on the NASDAQ as “XDT” and “XDTWW” Monday 5/5/2025.
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IPOs
| Name |
Ticker |
Raised ($mm) |
Sector |
Cash in Trust |
Coverage |
| Gores X |
GTEN |
312 |
General |
100.0% |
1/4 |
| Republic Digital |
RDAG |
264 |
General |
100.0% |
1/2 |
| Berto Acq |
TACO |
261 |
General |
100.0% |
1/2 |
| Cantor Equity Partners II |
CEPT |
240 |
General |
100.0% |
0 |
| Cartesian Growth III |
CGCT |
240 |
General |
100.0% |
1/2 |
| Copley Acq |
COPL |
150 |
General |
100.5% |
1/2 |
| Digital Asset |
DAAQ |
150 |
Financial |
100.0% |
1/2 |
| Real Asset |
RAAQ |
150 |
General |
100.0% |
1/2 |
| Lakeshore III |
LCCC |
60 |
General |
100.0% |
R |
New S-1's
| Name |
Ticker |
Size ($mm) |
Underwriter |
Trust Funding |
Coverage |
| Churchill Capital X |
CCCX |
300 |
BTIG |
100.0% |
1/4 |
| WEN Acq |
WENN |
261 |
Cantor |
100.0% |
1/2 |
| D. Boral ARC |
* |
250 |
D. Boral |
100.0% |
1/2 |
| MSM Frontier Capital |
MSMU |
225 |
Cohen |
100.0% |
R |
| ProCap Acq |
PCAP |
200 |
BTIG |
100.0% |
W/3 |
| Wintergreen Acq |
WTG |
50 |
D. Boral |
100.3% |
R |
Liquidations
None.
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Charter Extensions
- PHYUF extended its charter through 4/29/2026 with a monthly $0.05 per share sponsor contribution to trust. Approximately 8% of public shares remain, representing $18mm in trust.
- AEAE extended its charter through 5/1/2026 with no sponsor contribution to trust. Approximately 2% of public shares remain, representing $6mm in trust.
Upcoming Meetings and Deadlines
- 5/5/2025 HCVI Namib Minerals approval meeting
- 5/6/2025 AQUC Charter extension meeting (liquidation deadline 5/6/2025)
- 5/6/2025 FNVTF Charter extension meeting (liquidation deadline 5/8/2025)
- 5/7/2025 DIST Youlife International Holdings Inc. approval meeting
- 5/7/2025 PUCK Charter extension meeting (liquidation deadline 5/8/2025)
- 5/8/2025 RRACF Charter extension meeting (liquidation deadline 5/9/2025)
- 5/9/2025 MCAA Charter extension meeting (liquidation deadline 5/9/2025)
- 5/11/2025 CPTK Liquidation deadline
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Disclosures: Information is provided for informational purposes only and should not be relied upon as the basis for any investment decision nor considered as a recommendation or solicitation to buy or sell any securities. Site administrators may hold and trade in SPAC securities without notice.
You can contact us here.
Update your email preferences or unsubscribe from this email.
Copyright © 2025 SPAC Research. All rights reserved.
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News From the Past Week
Deal News
-
Ares Acquisition Corporation II (AACT) announced a deal to acquire Kodiak Robotics, Inc., a provider of AI-powered autonomous vehicle technology. The deal reflects an enterprise value of $2.6bn and includes a $60mm PIPE with investors including Soros Fund Management and ARK Investments. AACT intends to raise an additional $40mm in PIPE commitments. The transaction is expected to close in 2H 2025.
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IPOs
None.
New S-1's
| Name |
Ticker |
Size ($mm) |
Underwriter |
Trust Funding |
Coverage |
| Timber Road |
TMRD |
200 |
Roth Capital |
100.5% |
R |
| Globa Terra Acq |
GTER |
152 |
D. Boral |
100.5% |
(3/4)W+R |
| EGH Acq |
EGHA |
150 |
Cohen & Co |
100.0% |
R |
| Yorkville Acq |
* |
150 |
Clear Street |
100.5% |
W/3 |
| Vendome Acq |
VNME |
150 |
D. Boral |
100.0% |
1/2 |
Liquidations
None.
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Charter Extensions
- DECA extended its charter through 12/11/2025 with a monthly $0.02 per share sponsor contribution to trust. Less than 1% of public shares remain, representing $1mm in trust.
- BOWN extended its charter through 7/14/2025 with no sponsor contribution to trust. Redemption statistics were not provided.
Upcoming Meetings and Deadlines
- 4/22/2025 AACT Charter extension meeting (liquidation deadline 4/25/2025)
- 4/23/2025 AEAE Charter extension meeting (liquidation deadline 5/2/2025)
- 4/23/2025 PFTA Liquidation deadline
- 4/25/2025 PHYUF Charter extension meeting (liquidation deadline 4/29/2025)
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Disclosures: Information is provided for informational purposes only and should not be relied upon as the basis for any investment decision nor considered as a recommendation or solicitation to buy or sell any securities. Site administrators may hold and trade in SPAC securities without notice.
You can contact us here.
Update your email preferences or unsubscribe from this email.
Copyright © 2025 SPAC Research. All rights reserved.
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News From the Past Week
Deal News
-
Arogo Capital Acquisition Corp. (AOGO) announced a deal to acquire Bangkok Tellink, an emerging provider of advanced telecommunications, mobile network technology, and Internet of Things solutions. The deal reflects an equity value of $350mm. No closing timeline was given.
Deal Closings & Approvals
-
PowerUp Acquisition Corp. (formerly PWUP) closed its acquisition of Aspire Biopharma on Wednesday 2/19/2025 with less than 1% of public shares remaining. Ordinary shares and warrants are now trading on the NASDAQ as “ASBP” and “ASBPW.”
-
Battery Future Acquisition Corp. (BFACF) shareholders approved the company’s acquisition of Class Over Inc. at a meeting Friday 2/21/2025. Redemption statistics were not provided and no closing timeline was given.
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IPOs
None.
New S-1's
| Name |
Ticker |
Size ($mm) |
Underwriter |
Trust Funding |
Coverage |
| Blue Water III |
BLUW |
200 |
BTIG |
100.0% |
1/2 |
| CCIS Acq |
CCAC |
50 |
Benjamin Sec. |
100.0% |
R |
Liquidations
None.
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Charter Extensions
- RACY extended its charter through 2/15/2026 with a monthly $1,000 ($0.016 per share) sponsor contribution to trust. Less than 1% of public shares remain, representing $1mm in trust.
- MCAA extended its charter through 5/9/2025 with a monthly $10,000 ($0.021 per share) sponsor contribution to trust. Approximately 2% of public shares remain, representing $6mm in trust.
Upcoming Meetings and Deadlines
- 2/24/2025 SUAC Liquidation deadline
- 2/27/2025 BHAC XCF Global Capital, Inc. approval meeting
- 2/27/2025 FNVTF Scage International approval meeting
- 2/28/2025 RRACF Aurous approval meeting
- 2/28/2025 CNDA Charter extension meeting (liquidation deadline 3/3/2025)
- 2/28/2025 CMCA Charter extension meeting (liquidation deadline 3/3/2025)
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Disclosures: Information is provided for informational purposes only and should not be relied upon as the basis for any investment decision nor considered as a recommendation or solicitation to buy or sell any securities. Site administrators may hold and trade in SPAC securities without notice.
You can contact us here.
Update your email preferences or unsubscribe from this email.
Copyright © 2025 SPAC Research. All rights reserved.
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