If you had to go public - IPO or SPAC ?

Discussion in 'Stocks' started by Nobert, Mar 7, 2021.

  1. virtusa

    virtusa

    And a lot easier to manipulate and make quick money just based on rumors.

    If even a fake "businessman" like Trump can make money...
    https://www.cnbc.com/2021/10/25/tru...ice-after-big-gains-on-social-media-news.html

    "That pace was a major change from last week, when DWAC shares skyrocketed from $9.96 apiece at Wednesday’s close to $94.20 per share Friday — a whopping 845% rally in two days."
     
    #11     Nov 13, 2021
  2. Nobert

    Nobert

    What size would belong to the pro boyz via IPO and what via SPAC (if any).
    I understand it might differ alot, but if you had to make a bet of average in % of the ownership ?
     
    Last edited: Nov 13, 2021
    #12     Nov 13, 2021
  3. virtusa

    virtusa

    That is irrelevant. What matters is if you have enough money to do an IPO or a SPAC. SPAC needs much less money I think. So if IPO is better but you have no money to do one...
     
    #13     Nov 13, 2021
    Nobert likes this.
  4. Sig

    Sig

    So the SPAC sponsor usually keeps a 20%+ stake in the SPAC as their fee, plus they often have warrants or other options that allow them to dilute it further. This is effectively the same as the fee the IB is charging, once you look at what the selling company ends up with at the end of the day....it's just much higher.

    A SPAC is nice because you get to know the price you're getting up front and it's quicker than an IPO, but you pay dearly for that so if you're risk neutral you're going to come out ahead with an IPO. If you just want to sell quickly at a known price, PE has always been around for that. So a SPAC just adds more competition among buyers, which never hurts, but I don’t think it's anything revolutionary, regardless of company size.
     
    #14     Nov 14, 2021
    Nobert likes this.
  5. mervyn

    mervyn

    For a SPAC, you need to raise money for a SPAC first nothing is easy. SPAC sponsor is making a promo, not from appreciation of the target company.
     
    #15     Nov 14, 2021