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"One important feature of Coinbase's listing is that it is not an initial public offering (IPO), although many media publications have mistakenly described it as such. Coinbase has chosen to come to market via a direct listing, a relatively new option for companies wishing to go public, and one that is curiously suited to a crypto company. But the differences between direct listings and IPOs are material and are causing some confusion in the market."

IOSCO published a report that describes how special purpose acquisition companies (SPACs) work and outlines the development of SPAC markets. It then describes the regulatory approaches taken to SPACs and shows how these differ from those adopted for traditional initial public offereings (IPOs). SPACs may have some advantages and disadvantages compared to traditional IPOs, but both result in the same outcome and share some key risks. Accordingly, their regulatory treatment may be expected to be similar. However, differences in their mechanics (mainly because the SPAC process for bringing a private company onto the public market takes place in two steps compared to the "one step" IPO) mean that the regulatory treatment of SPACs may need to be adapted appropriately, and the survey confirms that in many respects the treatment of SPACs is not identical to that of an IPO.

Seychelles national stock exchange (MERJ) has issued off its digital initial public offering (IPO), that is poised to be the inaugural blockchain-based IPO in the world.

A special purpose acquisition company (SPAC) is a "blank check" shell corporation designed to take companies public without going through the traditional IPO process. Though SPACs have been around for decades, the financial maneuver has gained traction in recent months as more private companies eye exit opportunities and as the Covid-19 pandemic creates uncertainty in the IPO market. In fact, the number of SPAC IPOs in 2020 has already more than doubled compared to 2019 full-year totals.

"SPACs are also called "blank check companies" because at the time of their IPO they are only shell companies without assets and it is usually not known with which company a merger will eventually take place. As a result, the sponsor's reputation plays a crucial role: "sponsor picking" replaces "stock picking." The IPO prospectus usually contains information about the industry the sponsor is considering for a merger and information about the remuneration for the sponsor and their management team."

Crypto-asset exchange FTX is working with CM-Equity on a pre-listing futures market for the Coinbase initial public offering (IPO). FTX first partnered with CM-Equity when launching its tokenized stock spot and futures markets in October 2020. FTX also launched a pre-IPO market for Airbnb the day before the firm's December 10 stock trading debut. However, FTX prohibits U.S.-based traders from accessing Coinbase futures.

FTX launched its Coinbase Pre-IPO tokens (CBSE) on December 22 as part of its Tokenized Stocks product line. Coinbase is currently valued at $8 billion, although the company itself has no actual shares on the market yet. The CBSE tokens will convert to the equivalent share prices at the end of Coinbase's first day of public trading (market capitalization divided by the total number of shares). https://ftx.com/equities_terms/KID_CBSE.pdf

The Securities and Exchange Board of India (SEBI) is reportedly cracking down on high-level executives who hold Bitcoin and intend to take their companies public in the coming months. SEBI has asked promoters of such companies to sell off any cryptocurrencies they hold before raising funds from the public, adding that investment bankers and securities lawyers involved with any ongoing Initial Public Offering (IPO) process were already informed of the new regulation.

Ant Group has called a halt on its huge initial public offering (IPO), delaying the November 5 debut on the Shanghai and Hong Kong stock exchanges, less than 48 hours before the highly anticipated start of trading. A meeting earlier this week between Ant Group's senior executives and China's top financial regulators led to "significant change" to Ant's business environment, which may result in the fintech company not fulfilling the listing requirements or disclosure rules of the exchange, according to Ant Group's statement to the Shanghai bourse operator.

Coinbase has publicly filed an S-1 outlining its plans to complete an initial public offering (IPO) on the NASDAQ. Accrording to the filing, Coinbase intends to raise up to $1 billion and trade under the ticker symbol of "COIN." https://www.sec.gov/Archives/edgar/data/1679788/000162828021003168/coinbaseglobalincs-1.htm#i86a9d9b35e45447ea6eb369e5dcf1e6a_34

The SEC's approval of live streaming platform YouNow's Props token offering falls under Reg A+, which allows startups to raise up to $50 million in a public offering with fewer disclosures than a full IPO requires. Blockstack, a decentralized web platform for DApps, was the first blockchain firm approved under Reg A+.

To make investors feel comfortable again, we need more than ease and accessibility, that ICOs and IEOs offer. We also need to offer IPO-grade regulation and compliance. But most startups are not able to do that. So what's the middle ground? Well, maybe the solution is STOs, tokenized securities that comply with regulations. But for now STOs are still a hard route, that lacks liquidity and regulatory clarity.

The U.S. Securities and Exchange Commission (SEC) has reportedly opened an inquiry into "blank check" special purpose acquisition companies (SPACs). SPACs are listed shell companies that raise funds to acquire a private company with the purpose of taking it public, allowing such targets to sidestep a traditional initial public offering. The SEC letters asked the banks to provide the information voluntarily and, as such, did not rise to the level of a formal investigative demand. The SEC wanted information on SPAC deal fees, volumes, and what controls banks have in place to police the deals internally.

The upsides to SPACs include speed (the typical IPO process can take 2-3 years from start to finish, while a SPAC only takes 3-4 months), additional profit opportunities (institutional investors can purchase additional shares at a discount through warrants) and significant upside for sponsors (who can stand to make hundreds of millions of dollars regardless of how well the acquired company does after it's public). There are also some significant downsides to the SPAC structure, including expenses for the target company, time constraints, and the risk to retail investors.

Special Purpose Acquisition Companies (SPACs) are shell companies that raise capital in order to search for a private company that it will bring public in the future. Although SPACs have been growing over the past five years, last year they represented nearly 50% of all capital raised by operating companies, with more than $70 billion in proceeds raised. Because SPACs are typically smaller than operating companies, they accounted for more than half of all new listings in 2020.

This paper analyzes the structure of SPACs and the costs built into their structure. It finds that costs built into the SPAC structure are subtle, opaque, and far higher than has been previously recognized. Although SPACs raise $10 per share from investors in their IPOs, by the time the median SPAC merges with a target, it holds just $6.67 in cash for each outstanding share. For a large majority of SPACs, post-merger share prices fall, and these price drops are highly correlated with the extent of dilution, or cash shortfall, in a SPAC. This implies that SPAC investors are bearing the cost of the dilution built into the SPAC structure, and in effect subsidizing the companies they bring public.

Last week California-based Silvergate Bank's parent went public on the New York Stock Exchange. It was a small IPO, raising about $40M and it's a small bank (about $250M market capitalization and $2.2M of assets).

Crypto platform Bakkt is set to merge with Special Purpose Acquisition Company (SPAC) VPC Impact Acquisition Holdings. A SPAC is a shell company whose only purpose is to buy or merge with another company and allow it to be listed on the stock markets without going through lengthy and expensive process of an initial public offering, or IPO. Bakkt is expected to be valued at $2.1 billion after completing the merger.

While this guidance does not create any new obligations or modify existing disclosure obligations, it does summarize a number of Staff concerns that have been reflected in previous SEC comment letters. As SPAC sponsors are normally quite keen to have their registration statements reviewed as expeditiously as possible, SPAC sponsors will need to consider their proposed SPAC structures and registration statements in light of the new guidance.

Shares of online insurer Lemonade more than doubled in its market debut to reach a $3 billion market cap. Lemonade, launched in 2016, offers insurance to renters and homeowners with the use of artificial intelligence and chatbots, allowing the company to speed up the process. Customers are guided by a chatbot through the application process in under a minute, and claims get paid that quickly as well.