If you had to go public - IPO or SPAC ?

Which path would you choose ?

 

Direct listing is better.

 

Why ?

 

SPAC. Less paperwork and less cost.

 

no underwriters so no discount for them equals fairer price.

 

I bet you can ipo at a higher price with a spac as you only have to negotiate with one shareholder who doesn’t have a strict profit motive.

 

Time for someone to disrupt this niche, 7% - 8% commissions for banks via IPO, that's - a lot.

 

big ipos go for a lot less: 1percent I think.

 

Another option is a reverse merger where an existing registration (public shell) can be cleared out for the new entity.

 

Man speaking about one of the first ones in the industry :

https://www.elitetrader.com/et/threads/mafias-hidden-money-maker-on-wallst.362524/