4 ms·

I really hate the idea of using a food delivery app to promote a complicated financial product. Retail investors will only be able to purchase IPO shares throu

I really hate the idea of using a food delivery app to promote a complicated financial product. Retail investors will only be able to purchase IPO shares through the app after making a purchase through deliveroo so maybe they are just trying to use this as a small promotional tool for the app.

bidirectional 6y ago
What's the complicated financial product? It's just equity.
- lazide 6y ago
  Equity is one of the most complicated (and easiest to mislead buyers with) financial product out there? Are the books cooked? Who knows. What are the share classes, and how do they relate to each other? Who knows. What are the bylaws, and how is board composition determined? Who knows. All of these are huge. People get misled by far simpler products (like loans) all the time, let alone something like this.
  - ahepp 6y ago
    Usually when people talk about "complicated financial products" they mean some kind of derivative. Yes, you can cook the books. That doesn't make the product complex. It is fair to point out that some tech IPOs (We work comes to mind) had pretty sketchy corporate structuring and stock classes. But I don't think there's any simpler financial product than equity. You can do the same kind of financial engineering with bonds. Do you really know what's in the covenant? Is there even a covenant to speak of? People have been getting burnt for decades now by companies finding creative ways to separate the collateral from the loan.
mattmanser 6y ago
How's this different to brewdog selling shares to its customers? They've been doing that for years, you get a free beer on your birthday, etc. Been successful for them and their customers. Wouldn't be too surprised if they directly inspired deliveroo to do the same, that someone in Deliveroo's UK head office is a brewdog shareholder and suggested it off the back of that. They seem to be trying to build a similar kind of brand.
- leipert 6y ago
  You got me so excited. But then reading through the fine print, I realized my excitement is about three months too late. > Therefore, subject to the following paragraph, the Offer will be closed in all of the Approved Jurisdictions, except for the United Kingdom, on and from 10:59 p.m. (GMT) on 31 December 2020 ("EU Closing Date"). One needs to reside in US, AU, UK, Ireland or Spain? to be able to participate.

bidirectional 6y ago

What's the complicated financial product? It's just equity.

lazide 6y ago
Equity is one of the most complicated (and easiest to mislead buyers with) financial product out there? Are the books cooked? Who knows. What are the share classes, and how do they relate to each other? Who knows. What are the bylaws, and how is board composition determined? Who knows. All of these are huge. People get misled by far simpler products (like loans) all the time, let alone something like this.
- ahepp 6y ago
  Usually when people talk about "complicated financial products" they mean some kind of derivative. Yes, you can cook the books. That doesn't make the product complex. It is fair to point out that some tech IPOs (We work comes to mind) had pretty sketchy corporate structuring and stock classes. But I don't think there's any simpler financial product than equity. You can do the same kind of financial engineering with bonds. Do you really know what's in the covenant? Is there even a covenant to speak of? People have been getting burnt for decades now by companies finding creative ways to separate the collateral from the loan.

mattmanser 6y ago

How's this different to brewdog selling shares to its customers? They've been doing that for years, you get a free beer on your birthday, etc. Been successful for them and their customers. Wouldn't be too surprised if they directly inspired deliveroo to do the same, that someone in Deliveroo's UK head office is a brewdog shareholder and suggested it off the back of that. They seem to be trying to build a similar kind of brand.

leipert 6y ago
You got me so excited. But then reading through the fine print, I realized my excitement is about three months too late. > Therefore, subject to the following paragraph, the Offer will be closed in all of the Approved Jurisdictions, except for the United Kingdom, on and from 10:59 p.m. (GMT) on 31 December 2020 ("EU Closing Date"). One needs to reside in US, AU, UK, Ireland or Spain? to be able to participate.