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Corporate Finance Explained | IPOs, Direct Listings, and SPACs: How Companies Go Public
Episode 162
Ever wondered why companies like Airbnb, Spotify, and WeWork chose such different paths to the public markets? In this episode of Corporate Finance Explained on FinPod, we break down the three main ways companies go public: the traditional IPO, the disruptive Direct Listing, and the volatile SPAC.
We'll unpack the mechanics, the trade-offs, and the key factors that drive a company's leadership to choose one door over the others.
This episode covers:
- The IPO: The classic route for raising billions in capital, but we reveal the hidden costs and why it led to Airbnb's "money left on the table" problem.
- The Direct Listing: The cheaper, faster, and more transparent alternative. We explore why it was the perfect fit for companies like Spotify and Slack who wanted liquidity, not capital.
- The SPAC: The "wild west" of going public. We explain its appeal for speed and why it's a high-risk gamble that ultimately couldn't save WeWork's flawed business model.
By the end of this episode, you’ll be able to quickly analyze any public offering and understand the strategic choices behind it.
Published on 13 hours ago