Traditional IPO
topic on 2 shows · 6 statements across 4 episodes
6 statements about Traditional IPO, every show
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…”
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, …”
Gurley: IPOs popping 50% to 70% are far more expensive than SPACs
“You know, everyone says SPACs are expensive, but when your stock pops 50 to 70% in the IPO, that's way more expensive than a SPAC, and so it created this window.”
Chamath: Direct listings produce the same underpricing result as traditional IPOs
“Irrespective of what the goals of the direct listing were, the result is the same as a traditional IPO.”
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.”
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.”