šCompanies Gone Public in 2021
68 companies have gone public during 2021. 6 of which were Direct Listing. 9 were SPAC and 53 were IPO.
A direct public offering (DPO) or direct listing is a method by which a company can offer an investment opportunity directly to the public.
A special purpose acquisition company (SPAC), is a shell corporation listed on a stock exchange with the purpose of acquiring a private company, thus making it public without going through the traditional initial public offering process.
An initial public offering (IPO) or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also retail (individual) investors.
Inspired by this visualization and this article, I tried to find out whether the method used for āgoing publicā had any long-run effect on the stock price. By building this dashboard, I was able to perform some analysis.
By comparing the initial public offering price to todayās January 9th, 2022 price and checking if the stock went up or down, we can see that:
- 28% of companies gone public using IPO went up, while 71% went down.
2. 100% of companies gone public using SPAC went down.
3. 50% of companies gone public using Direct Listing went up, while 50% went down.
We can also check the average stock performance per āListing Typeā and see that most stocks went down more than up.
We can see that SPAC was used only during the first half of 2021.
Final Thoughts
SPAC? hmm.
The Dashboard can be viewed here. Any feedback is welcomed and appreciated šš»
Iāve also published the dataset used in Kaggle.
