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I know SPACs get a lot of hate but I love seeing Wall Street listing firms get cut out of the IPO, losing their enormous "traditional" slice of the IPO pop. Go

I know SPACs get a lot of hate but I love seeing Wall Street listing firms get cut out of the IPO, losing their enormous "traditional" slice of the IPO pop. Good luck to MariaDB.

boulos 5y ago
You're thinking of "direct listings" (and even then, Morgan Stanley has done several of them). SPACs are actually fairly inefficient and usually give large windfalls to the SPAC sponsors.
- bpodgursky 5y ago
  I'm far more OK giving a windfall to the SPAC sponsor who sought out and helped a promising company to merge with and list, than a WS gatekeeper who is paid simply for being in-between a startup and an IPO.
  - mikeyouse 5y ago
    Yeah, let's stick it to the Wall Street gatekeepers by paying fees to this SPAC. > The Angel Pond SPAC vehicle was founded by CEO and Chairman Theodore Wang, the founder of Puissance Capital Management and Angel Pond Capital and a former Partner at Goldman Sachs, and Simon Xie, the founder and Executive Director of Hangzhou Hupan Shannan Capital Management and a co-founder of Alibaba Group. If you want public money (via SPAC or IPO), you're paying money to "Wall Street" in one form or another.
_sword 5y ago
Ultimately Wall Street gets paid more for SPACs than IPOs. Both sponsors and their advisors get more fees and upside. There’s a reason so many SPAC’s happened during 2020 and 2021 and it wasn’t because companies thought SPAC’s were superior to IPO’s. Banks made more money.
NelsonMinar 5y ago
As a class, SPACs have higher fees than IPOs and perform worse as investments. https://www.economist.com/finance-and-economics/2021/12/04/have-spacs-been-cleaned-up https://www.economist.com/finance-and-economics/2021/12/04/h...
HaZeust 5y ago
The trick to stopping Wall Street listing firms from their slice is NOT SPACs, but rather the “Dutch Auction” IPO method. Created by American Company WR Hambrecht - and popularized by American Company Google, the Dutch Auction IPO method allows online bidders to pre-emptively bid a stock’s price, which lets companies find an equilibrium for supply and demand that they believe investors will be happy about. This, in turn, allows IPOs to encounter less manipulation and allows them to dodge banking “flips”; where banks set the price, buy it low, and sell high in the future

I know SPACs get a lot of hate but I love seeing Wall Street listing firms get cut out of the IPO, losing their enormous "traditional" slice of the IPO pop. Good luck to MariaDB.

boulos 5y ago

You're thinking of "direct listings" (and even then, Morgan Stanley has done several of them). SPACs are actually fairly inefficient and usually give large windfalls to the SPAC sponsors.

bpodgursky 5y ago
I'm far more OK giving a windfall to the SPAC sponsor who sought out and helped a promising company to merge with and list, than a WS gatekeeper who is paid simply for being in-between a startup and an IPO.
- mikeyouse 5y ago
  Yeah, let's stick it to the Wall Street gatekeepers by paying fees to this SPAC. > The Angel Pond SPAC vehicle was founded by CEO and Chairman Theodore Wang, the founder of Puissance Capital Management and Angel Pond Capital and a former Partner at Goldman Sachs, and Simon Xie, the founder and Executive Director of Hangzhou Hupan Shannan Capital Management and a co-founder of Alibaba Group. If you want public money (via SPAC or IPO), you're paying money to "Wall Street" in one form or another.

_sword 5y ago

Ultimately Wall Street gets paid more for SPACs than IPOs. Both sponsors and their advisors get more fees and upside. There’s a reason so many SPAC’s happened during 2020 and 2021 and it wasn’t because companies thought SPAC’s were superior to IPO’s. Banks made more money.

NelsonMinar 5y ago

As a class, SPACs have higher fees than IPOs and perform worse as investments. https://www.economist.com/finance-and-economics/2021/12/04/have-spacs-been-cleaned-up https://www.economist.com/finance-and-economics/2021/12/04/h...

HaZeust 5y ago

The trick to stopping Wall Street listing firms from their slice is NOT SPACs, but rather the “Dutch Auction” IPO method. Created by American Company WR Hambrecht - and popularized by American Company Google, the Dutch Auction IPO method allows online bidders to pre-emptively bid a stock’s price, which lets companies find an equilibrium for supply and demand that they believe investors will be happy about. This, in turn, allows IPOs to encounter less manipulation and allows them to dodge banking “flips”; where banks set the price, buy it low, and sell high in the future