Intuitive Machines, a Texas-based company providing space debris management and space services, completed its merger with a special purpose acquisition company (SPAC) on February 13, but with much less funding than expected. 

Initially, Intuitive Machines expected to receive up to USD 301 million from the SPAC trust, but shareholders chose to redeem a significant USD 279.8 million before the transaction closed. The company did, however, secure USD 55 million in capital from an Inflection Point affiliate and USD 26 million in PIPE (private capital in public equity). 

On February 14, the company began trading on Nasdaq under the ticker “LUNR” and closed at USD 10.03 on its first day of trading.

Analyst QuickTake: In September 2022 , the company announced its plans to go public through a SPAC (Inflection Point), at a valuation close to USD 1 billion. However, at that time, the SPAC frenzy that had boomed in 2020 and 2021 had already come to a halt. Post-SPAC companies struggled to remain afloat on the public market as they failed to meet inflated forecasts. In the same year, Chamath Palihapitiya, who took Virgin Galactic public and was well-known for his involvement in SPACs, decided to unwind two of his special-purpose companies and return money to shareholders. The redemptions further indicate that investors are growing weary of SPACs.