Continued volatility in the equity capital markets has revived what was thought to be a zombie after 2022 – the SPAC. There is an old investment banking mantra that they can do an IPO in a down market or an up market, but not a volatile market. Similar to the volatility at the dawn of the COVID-19 pandemic lockdowns in early 2020, this new bout of market uncertainty has prompted SPAC sponsors and some investment banks to return to the SPAC IPO market with the confidence that companies will still pursue an alternative path to access the public equity markets, the de-SPAC. Since the start of 2025, a new class of blank check companies have gone public and some have announced plans to merge with target companies in areas like crypto, autonomous vehicles and nuclear power.
Source: SPAC (Re-)Attack: Top Considerations for Issuers Considering a De-SPAC Transaction