2018-01-08 10:37:00 Mon ET
stock market gold oil stock return s&p 500 asset market stabilization asset price fluctuations stocks bonds currencies commodities funds term spreads credit spreads fair value spreads asset investments
Spotify considers directly selling its shares to the retail public with no underwriter involvement. The music-streaming company plans a direct list on NYSE in lieu of a hot IPO. This alternative procedure can be cheaper, faster, and less legally risky to the issuer. The issuer may then lose its first-day price run-up in a hot IPO, which seldom benefits anyone apart from the institutional investors who receive an initial allocation of shares. In contrast, most startups file for an IPO through investment banks. These underwriters round up institutional investors to buy the issuer's fresh shares in order to establish a fair market price. Through a promotional roadshow, the underwriters commit to covering these new shares in their due diligence and fair valuation. The underwriters receive a considerable bounty in the order of 3%-5% of the IPO price (e.g. $300 million fee-payment to Alibaba's underwriters).
As cash-rich companies such as Spotify, Uber, and Airbnb have little incentive to raise capital via IPOs, these cash cows prefer to directly list on stock exchanges. Spotify can thus bypass firm commitment on the part of IPO-fee-driven investment banks. Nevertheless, the direct list may expose Spotify to bear raid by short-sellers, little underwriter liability, and less blue-sky transparency. This direct list option may attract more unicorns into the U.S. public stock market.
If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.
2018-03-03 11:37:00 Saturday ET
President Xi seeks Chinese congressional approval and constitutional amendment for abolishing his term limits of strongman rule with more favorable trade de
2019-01-15 13:35:00 Tuesday ET
Americans continue to keep their financial New Year resolutions. First, Americans should save more money. Everyone needs a budget to ensure that key paychec
2024-02-04 08:28:00 Sunday ET
Our proprietary alpha investment model outperforms most stock market indexes from 2017 to 2024. Our proprietary alpha investment model outperforms the ma
2017-09-13 10:35:00 Wednesday ET
CNBC reports the Top 5 features of Apple's iPhone X. This new product release can be the rising tide that lifts all boats in Apple's upstream value
2020-07-12 08:30:00 Sunday ET
The lean CEO encourages iterative continuous improvements and collaborative teams to innovate around core value streams. Jacob Stoller (2015)
2020-06-03 09:31:00 Wednesday ET
Lean enterprises often try to incubate disruptive innovations with iterative continuous improvements and inventions over time. Trevor Owens and Obie Fern