SC II Acquisition, a newly formed SPAC backed by Nukkleus leadership, has priced its $150 million IPO at $10 per unit, marking another significant blank-check debut in a year that has seen selective but notable SPAC activity. The offering reflects ongoing investor interest in acquisition vehicles targeting high-growth or cyclical industries, even as the broader SPAC market continues to reset from prior years’ excesses.

Company Background

SC II Acquisition is led by CEO and Chairman Menachem Shalom, who also serves as CEO of Nukkleus, the fintech company that went public via SPAC merger in 2023 before pivoting into a defense-focused holding strategy. Shalom is joined by CFO Asaf Yarkoni, a seasoned financial executive who simultaneously serves as CFO of Kamari Pharma, Aroma Republic, and the leadership team’s previous SPAC, Kochav Defense Acquisition. Their first SPAC, KCHVU, raised $220 million earlier in 2025 and remains in search of a target. With this second vehicle, the team leverages extensive experience in both defense and emerging technology sectors, as well as established global networks capable of identifying acquisition candidates with durable business models and demonstrable growth trajectories.

IPO Details

SC II Acquisition raised $150 million by offering 15 million units at $10 each. Each unit contains one share of common stock and one right that converts into one-fifth of a share upon completion of a business combination. The company plans to trade on the Nasdaq under the ticker SCIIU. D. Boral Capital acted as the sole bookrunner on the offering. While the SPAC has not disclosed a specific industry focus, it intends to pursue companies with strong free cash flow characteristics, sustainable competitive advantages, and highly experienced leadership teams operating in expanding sectors or industries poised for cyclical rebound.

Market Context & Opportunities

The SPAC market has entered a period of recalibration, with fewer offerings but higher scrutiny from institutional investors. Deals that come to market now typically feature more disciplined structures, stronger sponsor reputations, and clearer strategic focus. SC II Acquisition benefits from a management team with a proven track record in raising capital and navigating complex sectors such as defense, cybersecurity, and advanced technology. As geopolitical tensions and tech-driven modernization continue to reshape global markets, SPACs targeting resilient or mission-critical industries may find more compelling acquisition opportunities than speculative tech vehicles of prior cycles.

Risks & Challenges

Despite improved sentiment in selective pockets, the SPAC landscape remains challenging. Increased regulatory oversight, tighter investor due diligence, and rising interest rates continue to limit speculative activity. SC II Acquisition must demonstrate disciplined deal sourcing to avoid overpaying in competitive sectors. Additionally, the sponsor group’s involvement in multiple concurrent SPACs could raise questions about bandwidth, focus, and execution pacing. Market volatility and sector-specific shifts could also complicate efforts to close a value-accretive transaction within the allowed timeframe.

Closing Paragraph

With its $150 million IPO complete, SC II Acquisition enters a crowded yet opportunity-rich environment for strategic dealmaking. Whether the SPAC successfully secures an acquisition that resonates with investors will depend on its ability to identify businesses with clear operational strength and long-term growth potential. The coming months will reveal whether this vehicle becomes a standout in the evolving SPAC landscape or simply another entrant in a competitive field.