Money Makers Mentor

Traditional IPOs vs. Non-Traditional IPOs

Many companies have sidelined their traditional IPOs this year because of the Covid-19 pandemic. However, other companies that were planning IPOs have still decided to do so, but in a different way than the traditional route of listing on the stock market right away.

One of the most common ways companies are doing these non-traditional IPOs, is through Special Purpose Acquisition Company (SPAC) deals. A SPAC is a shell company that raises money in an IPO with the goal of buying a private company in a deal that would then take the acquired company public. SPAC deals give private companies an idea of the valuation it will achieve when it does go public, as opposed to punting on a traditional IPO.

Foregoing Traditional IPOs

These are some of the companies that have gone public thro…

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