Matt Levine’s Money Stuff: Bill Ackman Has a SPARC

Nov. 29, 2021, 5:49 PM


How much would you pay for the right to buy one share of one big future initial public offering at the IPO price? What a strange question. You don’t know which IPO it will be, or when, or what the price is. Just some big company, sometime in the future. One useful piece of information is that most IPOs go up; in particular, the average first-day IPO pop is around 18%. So if you buy a share at the IPO price and sell immediately, you’ll probably make about 18%, though there is a lot of variance around that number. But ...

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