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Technology Stocks : Blank Check IPOs (SPACS) -- Ignore unavailable to you. Want to Upgrade?

To: Triffin who wrote (2671)	6/9/2020 8:29:21 AM
From: Glenn Petersen	2 Recommendations Recommended By sixty2nds Triffin Read Replies (1) \| Respond to of 3862

No two SPAC deals are identical and the percentage retained by the SPAC shareholders can vary widely, depending on the valuation assigned to the company being acquired. Also, remember that the SPAC is bringing cash to the table. Underwriter commissions for an IPO can run as high as 7% of the offering proceeds, and the company being acquired can save these fees when it goes public by merging with a SPAC. Because the SPAC IPOs are virtually identical, the underwriting fees when a SPAC goes public generally run in the two to three percent range. When Social Capital, the company that acquired Virgin Galactic, went public in 2017 it said that it was going to target high tech, high profile unicorns that wanted to bypass the traditional IPO. I expect that there are going to be a lot more deals like DKNG and NKLA.