Palantir reportedly doing a direct listing with investor lockup - Business Insider

  • 📰 BusinessInsider
  • ⏱ Reading Time:
  • 59 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 27%
  • Publisher: 51%

Malaysia News News

Malaysia Malaysia Latest News,Malaysia Malaysia Headlines

Palantir's direct listing breaks with Spotify and Slack in one critical way that affects insiders' ability to cash in their shares

The lock-up provision left some observers scratching their heads. Lockup periods are common in traditional IPOs. But neither Slack nor Spotify — the only two companies that have thus far used the direct listing method to go public in the US — included one in their offerings.

"It's just two" direct listings to date, said Reena Aggarwal, a finance professor and director of the Center for Financial Markets and Policy at Georgetown University. "That doesn't set a trend yet," she continued.In a traditional IPO, companies raise money by selling shares to institutional investors who then turn around and create a market for the stock by selling some of those shares on a stock exchange.

The laws and regulations governing public offerings don't mandate lockup periods, but they're typically required by the investment banks that underwrite IPOs. The IPO market is on fire after a short-lived drought — here are the hottest public debuts to keep an eye on, and which banks are eyeing big fees for pulling them off.

If anything, the reception Palantir is likely to see from public investors is even more uncertain, given what's been going on the markets. While the major indices have all bounced back from their coronavirus lows this spring and the S&P 500 and the Nasdaq are both at or near record levels, the markets have been highly volatile in recent months, Aggarwal said.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 729. in MY

Malaysia Malaysia Latest News, Malaysia Malaysia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Inside Britney Spears' conservatorship and the #FreeBritney movement - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web. It sounds like her parents are living large off her misery and have her locked up to keep her from emancipating her wealth from them 🤬🤬🤬
Source: BusinessInsider - 🏆 729. / 51 Read more »

Take a look inside a historic Missouri house with nine jail cells - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web. This would be a great house for those in the family that refuse to quarantine. 🤣
Source: BusinessInsider - 🏆 729. / 51 Read more »

Look inside President Trump and Larry Ellison's relationship - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web. what's going to happen to these corrupt deals when Trump is defeated.
Source: BusinessInsider - 🏆 729. / 51 Read more »

Inside Sunrun and Vivint Solar's historic $3.2 billion deal - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web. Gold shortages are here and increasing. Sandstorm Gold is going to have INCREDIBLE cash flow for next decade. $1800+ Gold spot price certainly does not hurt!
Source: BusinessInsider - 🏆 729. / 51 Read more »