i m gonna watch this twice, to try and comprehend everything u said, u went very deep and to us new investors the stuff u mentioned is mind blowing, i think DPO is a game changer for future listing references
Agreed, in my view it is a huge game changer but the underwriting industry would obviously want to control this process. To offer a comparison, Snap Inc raised $3.4 billion through a normal IPO last year and paid around $85 million in listing fees. Spotify is reportedly paying $44 million for a $2.4 billion raise. As a % of total proceeds, fees accounted for 1.83% of Spotify's raise compared to 2.5% for Snap's. With the shares now trading and everything running smoothly, why wouldn't companies go the direct listing route if they can save millions?
They still hired investment bankers to help with the sale acting as commission brokers rather than underwriters. It cut down the fees paid but they still paid for their infrastructure. While the investment banks will never be fully cut out, this does put enormous pressure on their fee structure if more commonly adopted.
Where did you find those data about direct listings completed in the last decade? I'm doing a research about it, but I'm struggling to find exhaustive data. P.s. Great video! Keep it up :)
