Wild SPAC deal-hounds howl at moonshots

CSG NV

11/09/2026 14:25

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
By Jeffrey Goldfarb
NEW YORK, Sept 11 (Reuters Breakingviews) - If there’s any lingering doubt that greed eclipses fear these days, just look at the number of blank checks investors are willing to write. Cash-stuffed shell companies are once again in vogue, finding easy purchase in markets that have eagerly bought shares in everything from rocket ships to subway sandwiches. Their wildly ambitious takeover targets and poor track record are indicative of an unhealthily voracious appetite for risk.
An unlikely resurgence in special-purpose acquisition companies is in full swing. With 143 such initial public offerings this year, the tally already surpasses last year’s total and represents 62% of all new U.S. issuers, according to LSEG data. It is more than the number of garden-variety market debuts in Europe, Hong Kong or Shanghai. The roughly $28 billion raised by SPACs also exceeds sums from each of those three regions, home to chunky listings such as defense outfit Czechoslovak Group CSG.AS, Apple supplier Luxshare Precision Industry 002475.SZ and humanoid-robot maker Unitree 688836.SS.
Jumbo artificial-intelligence IPOs have launched moonshots galore. Although shares of Elon Musk’s satellites-to-social-media empire SpaceX SPCX.O and chipmaker Cerebras Systems CBRS.O have not performed well since their market debuts earlier this year, SPAC sponsors are again capitalizing on the widespread hype behind cutting-edge technology.
Undaunted by the last boom’s bust led by electric and self-driving vehicles, a quest for returns from speculative ventures persists. The latest spate of mergers, or de-SPACs, has largely taken aim at robotics, rockets, AI, quantum computing and nuclear power, spanning companies such as Agility Robotics, Ursa Major Technologies, Robseek Intelligence, EigenQ and NuCube Energy. Pono Capital Four is buying space-drone maker Blackstar Orbital Technologies at a $380 million valuation. Refrigerated EVs, heavy-cargo drones and batteries outnumber takeovers of more conventional businesses like rapper Ice Cube’s basketball league BIG3 and disposable-cup vendor Eight Directions Technology.
In volatile markets, shell companies can be a safe place to stash cash and earn interest from Treasury bills, with investors able to get their money refunded if they don’t like the announced deal. History suggests they would be wise to do so. Of some 700 blank-check firms that have completed mergers since 2012, only about 10% trade above their $10-per-share guide price, according to data compiler SPAC Research. More than a third of them linger below $1. Past performance may not be indicative of future results, but the evidence in this corner of Wall Street is hard to ignore.
     
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CONTEXT NEWS
Plus Automation, which develops software for autonomous trucks, said on September 3 that it agreed to merge with Texas Ventures Acquisition III, a special-purpose acquisition company, at an $800 million equity value before the injection of new money.
Separately, Three Lions Acquistion said on September 2 that it closed its initial public offering, generating $100 million of proceeds. The SPAC intends to target businesses in sports, hospitality, leisure and real estate.

(Editing by Jonathan Guilford; Production by Pranav Kiran)
((For previous columns by the author, Reuters customers can click on GOLDFARB/jeffrey.goldfarb@thomsonreuters.com))