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So are these SPACs simply a method of avoiding standard public company disclosures, while providing liquidity to insiders? How would that be a good idea?
by itsoktocry 6y ago
So are these SPACs simply a method of avoiding standard public company disclosures, while providing liquidity to insiders? How would that be a good idea?
- trowaway888 6y agoI don't think Palantir going public is about liquidity for insiders. Rather, I think it is about access to public capital markets. Obviously, it does both, but I think the impetus is access to public capital markets.
- itsoktocry 6y ago>Rather, I think it is about access to public capital markets. I don't see anything, anywhere, regarding their goals for raising cash through this "IPO"; it looks like insiders selling shares to me. I could be wrong. But they are a software service company. Why would they need an influx of public capital?
- jiveturkey 6y agoeh? for the same reason any company, saas or not, needs public capital.
- trowaway888 6y agoI'm speculating here, which is in part, why I am interested in this discussion. I think they will issue additional shares shortly. The most likely use of funds is to scale and manage their sales division.
- thrill 6y agoPalantir did not go public via a SPAC but by simply directly listing their shares for public sale. A company might choose to do this if the number of shares it offers would not be significantly valued higher going through the "traditional" IPO process. Even with a SPAC there's no avoidance of disclosures that are required per SEC filings.