Webull Pursues $7.3 Billion IPO Via SPAC Despite Risks of Smaller User Base
• Webull, a popular trading platform, is pursuing an IPO through a merger with a special purpose acquisition company (SPAC) • Recent SPAC deals have significantly underperformed the broader market, returning -74% to -86% • Webull has 20 million registered users but only 4.3 million funded accounts, far less than competitors like Robinhood • Webull is projected to have a $7.3 billion valuation, which seems high given its smaller user base and engagement • While the IPO market is hot, the Webull IPO comes with risks due to its non-traditional route, competitive landscape, and high proposed valuation