SPAC to the Future

I wonder whether Monzo - or even other neobanks like Starling / Revolut - will opt for a shotgun-wedding and float via a SPAC this year. Probably a good way to avoid trying to sell into the oncoming gouging recession.

Eh? I’m not sure I understand any part of this post apart from Monzo, Starling and Revolut

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A special purpose acquisition company ( SPAC ) is a “blank check” shell corporation designed to take companies public without going through the traditional IPO process. SPACs allow retail investors to invest in private equity type transactions, particularly leveraged buyouts.

Still doesn’t really help with the understanding though

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It’ll be harder to IPO during a recession. A SPAC is a shortcut.

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I don’t think anyone will be IPOing this year, and certainly not Monzo

Loads of IPOs have happened already this year but nothing to shout home about. Probably will get Brewdog, Deliveroo and Darktrace in 2021.

Almost had Roblox but that’ll be DPO instead.

But yeah 2020 made SPAC cool and 2021 is full steam ahead, the craziest that’s atm is CCIV doing a NKLA getting Lucid being pumped to $100 and finding out non of their cars actually work. :crystal_ball:

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Promising Lucid Motors rumours, with CCIV SPAC. Pershing Tontine is looking for a fintech, stripe is a rumoured target of theirs. I’ve invested in both.

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Interesting, wasn’t Stripe rumoured to IPO last year - so they would be quite likely to IPO at some point this year?

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Yup, stripe has been on the cards for a while. Then the $PSTH SPAC showed up looking to merge with a fintech, and the first we heard rumblings of were of a potential stripe merger. Some folks suspect Space X as a possibility too, though they’re not fintech.

A good article here breaks down some of the potential candidates:

https://seekingalpha.com/article/4398341-what-bill-ackman-and-pershing-square-tontine-holdings-be-buying

Edit: replaced the horrid Google amp link with a direct URL to the article

I have a feeling we’re approaching something of a SPAC bubble of late, if we’re not already in on. I’m quite cautious of them though, so I’ve only bought into two this far and only in a tiny quantity on the basis of rumours, leaks, and desired targets. If they’re successful and things pan out, I’ll buy more upon any announcements. I’m particularly excited about a Lucid Motors IPO though. More so than stripe.

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At least I might see some money back on those few Brewdog shares I have then!

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I think it’s still a bit early for Space X to enter onto the stock market, so that doesn’t seem too likely to me - I suppose you never know.

Thanks for link, it’s interesting reading. Although SPACs do seem to be in a bubble lately - I agree with you!

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Can we try keep the acronyms to a minimum and if they’re needed, explain what they mean please! :hot_coral_heart:

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OMG, WTF, BBQ!

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It’s the old TLA syndrome, which SPAC is beyond - that is in the FLA category.

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CCIV = Churchill Capital followed by the Roman numerals for 4. This is the exchange ticker for Churchill Capital Corp IV.

SPAC = Special purpose acquisition company. What CCIV is. The post above mine does a good job at explaining exactly what these companies are.

Pershing Square Tontine Holdings, also a SPAC. PSTH is the ticker for this company on the exchange.

Finance + technology fused together. The type of company Monzo is. It’s a pretty exciting sector of the market worth looking into if you’ve never heard of it.

A stupid thing google invented that ought to be completely eradicated from the internet on a permanent basis.

Uniform Resource Locator. What we use to navigate to websites on the internet because they’re more human friendly than IP addresses.

The Internet Protocol. This routes packets of data across computer networks so the internet can exist.

It’s an ETLA.

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image

YMCA ISS IPA BBC UFO KGB RSPCA

Am I doing this right?

Depends.

If you meant Belarus, then yes. If their federal neighbour, then they’re the FSB now