Energy infrastructure developer Hecate Energy will go public in the United States in a $1.2 billion deal with blank-check vehicle EGH Acquisition, the companies said on Thursday, as the revival in SPAC transaction carries into 2026.
Deals through special purpose acquisition companies (SPAC) have made a strong comeback on Wall Street in the past 12 months after years of tepid activity, with several seasoned sponsors once again opting for the alternative to traditional initial public offerings.
A SPAC is a shell company that raises money in an IPO for the purpose of merging with a privately held entity and taking it public.
Founded in 2012, Hecate develops utility-scale energy parks spanning across solar, battery storage, wind and thermal generation. Its portfolio of renewable and thermal power projects is spread across 26 states in the U.S.
Since inception, Hecate has sold more than 12 gigawatts of projects and has over 4 GW currently in exclusive or advanced negotiations for sale, it said.
“Access to the public capital markets will strengthen our ability to accelerate project development and monetization. A publicly traded platform also enhances our ability to attract institutional investors,” said Hecate CEO Chris Bullinger.
The public listing comes against the backdrop of surging power demand from data centers as technology companies expand their artificial intelligence capabilities.
U.S. electricity use is expected to grow 1% this year and 3% in 2027, according to the Energy Information Administration, in what would mark the strongest four-year growth period since 2000.
The combined company will be listed on the Nasdaq under the ticker symbol “HCTE”. The deal is expected to close in mid-2026.
Cohen & Company and Seaport Global advised EGH on the deal, while PEI Global Partners advised Hecate.
Source: Reuters.com