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.
2018-02-19 08:39:00 Monday ET

Snap cannot keep up with the Kardashians because its stock loses market value 7% or $1 billion after Kylie Jenner tweets about her decision to leave Snapcha
2018-08-01 11:43:00 Wednesday ET

Apple becomes the first company to hit $1 trillion stock market valuation. The tech titan sells about the same number of smart phones or 41 million iPhones
2019-07-05 09:32:00 Friday ET

Warwick macroeconomic expert Roger Farmer proposes paying for social welfare programs with no tax hikes. The U.S. government pension and Medicare liabilitie
2019-05-15 12:32:00 Wednesday ET

The May administration needs to seek a fresh fallback option for Halloween Brexit. After the House of Commons rejects Brexit proposals from the May administ
2018-03-25 08:39:00 Sunday ET

President Trump imposes punitive tariffs on $60 billion Chinese imports in a brand-new trade war as China hits back with retaliatory tariffs on $3 billion U
2025-10-03 10:31:00 Friday ET

Stock Synopsis: With a new Python program, we use, adapt, apply, and leverage each of the mainstream Gemini Gen AI models to conduct this comprehensive fund