![]() ![]() Here's how Andreessen Horowitz explains it (skip down to my summary if you wish): However, I want to emphasize that IPOs generally have lock-up periods. Instead, if you're overly interested in why a company might want to do a Direct Listing versus an IPO, then you can spend time reviewing this Pros and Cons material:Īt this point, we can almost dive into the key question about the PLTR lock-up. I won't get too far into the weeds about how direct listings work because it's distracting and not needed here. This is important and I promise I'll come back to this since it's a critical point. Typically, with direct listings, there is no lock-up period. In other words, owners sell directly without much Wall Street involvement. It does not involve any underwriters or other intermediaries, there are no new shares issued." ".the business sells shares directly to the public without the help of any intermediaries. In contrast, here's how a Direct Listing works: It "buys" a pile of low-price shares - or gets an allocation - and then profits handsomely when shares are offered to the public. It's very lucrative for it, and it makes most of its money when the stock hits the exchange. The underwriter works closely with the company throughout the IPO process, including deciding the initial offer price of the shares, helping with regulatory requirements, buying the available shares from the company and then selling them to investors via their distribution networks. In an IPO, new shares of the company are created, and are underwritten by an intermediary. Instead, it did a Direct Listing.įirst, here's how an IPO generally works: Palantir Direct ListingĬontrary to what many investors think, Palantir did not do an Initial Public Offering, "IPO," when it started trading on the New York Stock Exchange on September 30th, 2020. Finally, I tell you how I think PLTR shares might react due to the lock-up.īefore we answer any questions it's critical to understand how PLTR launched in the public markets.Then, I'll explain what typically happens with other lock-ups.I'll explain PLTR's direct listing set-up.I'm going to answer this question the best that I can. "What's going to happen when the lock-up period expires?" ![]() The number one question I get about Palantir ( NYSE: PLTR) goes like this: ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |