The SPAC market remained strong in the first quarter of 2025, with serial sponsors driving the bulk of deal pricing.
In the first quarter of 2025, the SPAC IPO market saw the pricing of 19 IPOs, raising a total of $3.1 billion. Approximately 80% of the new SPAC IPOs this quarter were from serial SPAC issuers, raising $2.7 billion. Over the last three quarters the SPAC market has averaged 20 IPOs, raising $3.4 billion each quarter. This surge in the market is attributed to an increase in the number of serial sponsor IPOs coupled with higher average deal sizes from those sponsors.
“We continue to see serial SPAC issuers coming back to market as they now represent the majority of SPAC IPOs for the last twelve months. We think in an increasingly volatile trading environment, serial SPAC issuers can emerge as an attractive alternative to access the public markets,” said Don Duffy, President of ICR. “Tariff uncertainty has caused numerous companies to pause their IPOs which could provide more deal sourcing opportunities as they eventually seek public market liquidity.”
“Despite broader market volatility, the SPAC landscape has returned to a point where experienced sponsors and high-quality targets can effectively leverage the go-public pathway,” said Niren Nazareth, Managing Director at ICR Capital. “In fact, we’ve seen strong post-merger stock performance among select names – after a period of initial weakness — including AST SpaceMobile, Redwire, and Intuitive Machines, all of which posted meaningful gains in 2024. The public markets have also begun to recognize the long-term potential of quantum technology companies such as Rigetti, D-Wave, and IonQ. These firms underscore the unique capital-raising flexibility that public listings can offer to early-stage innovators.”
ICR is the largest communications consultant and advisor to SPACs, having worked on over 170 transactions since 2021. Get a copy of ICR’s Q1 2025 SPAC Market Update & Outlook report today.
