traditional IPO
also referred to as: traditional ipos
5 statements across 3 episodes · 2 bullish · 2 bearish · 3 people on the record · first statement Jul 13, 2020 by Chamath Palihapitiya · across every show →
Everything said about traditional IPO, oldest first
Jul 13, 2020 negative
Palihapitiya: Traditional IPOs are corrupted by investment banks underpricing shares
“Traditional IPOs are very fraught with principal agent problems by the banks who try to feed cheap stock and, you know, poor price performance to other customers of theirs. Namely, the prime brokerage customers of their trading business.”
Jul 13, 2020 positive
Palihapitiya: SPACs allow forward financial forecasts while traditional IPOs ban them
“Did you know that you cannot create a forecast when you go public through a traditional IPO? No, I cannot show a multi-year projection of what you think the business can do. So there's all these arcane rules that you can work around that a SPAC solves.”
Dec 6, 2021 bullish
Dec 20, 2022 neutral
Direct listings open trading using the exact same mechanism as traditional IPOs
“I think the thing that most people don't understand Even very experienced bankers , I have to point out, the stock opens in a direct listing exactly the same way it opens in a traditional IPO, which is exactly the way it opens for already traded public compani…”
Dec 20, 2022 bearish
Direct listings will not happen during market downturns without first-day pops
“Well, not in the current capital environment, and that's because public company shares are trading at such a steep discount, that the only way you're going to get a company public is if you essentially promise to the institutions who are going to buy the IPO, …”