SPAC don't benefit us
$Altimeter Growth Corp(AGC.US$ Before u guys invest do u know that SPAC is given high valution that may or may not be fulfilled? Investors like you and me buy the SPAC shares at $10, most of the money is used to pay the private company share holders, in this case the grab CEO and friends, they also get shares of the listed company, hence most of our money does not go into the new combined company, out of $10, maybe only $1 goes to the now public grab company which is still loss making, it will continue to issues shares for $ and dilute us. if you don't know what is SPAC please don't invest.
If you don't believe. Go and Google. grab CEO just bought a good class bungalow.
If you don't believe. Go and Google. grab CEO just bought a good class bungalow.
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efficentupup : thanks your advice
Maniram Verma : many thanks
GrabDiamond : Maybe only $1...
103089073o : @101684056 from your statement, can you explain
1. Why most of the money is used to pay for the private company share holders?
2. Who are private company share holder are you refer to? is it current AGC share holder?
3. What is the reason of only $1 goes to Grab? what happen to the remaining $9?
4. May I know who will get the new issue share?
Any example or reference URL to this statement is much appreciated. Thanks.
185398 : just curious why are you here to comment if spac dont benefit you?
玲玲玲85 103089073o : new issuance proceeds can either go to existing shareholders (cash out) or to company (capital raising for investment etc). usually its a combi of both in different %. not vested in this nor well read in spac so cant explain more abt spac. will need to read the prospectus to find out more abt the use of proceeds
101684056 OP 185398 : because I bought several SPAC and they have gone to $4. just to caution u. a lot are very promising on investors slides and at high valuation. If u don't understand SPAC work u really need to read on it
101684056 OP 103089073o : just to add on AGC is a public company, it is listed. private means not listed(grab) so u know which I am refering to by saying public and private
101684056 OP 103089073o : ok so before the company go public, there are private shareholders correct? the founders of the company. if you want to know more u can search for other SPAC, business combination terms and conditions. SPAC must pay money to grab founders then only they will be willing to "sell" their company to us(investors of the SPAC), hence that's why the company can go public and we can own the shares. is just like today u set up the company u are the CEO, someone ask u to list it and sell your shares, so they can own half of your company u definitely will charge them $$ it's just that straightforward
Picachuchu : Thanks for sharing