Forget traditional investments like stocks or cryptocurrency–Rally, a platform specializing in fractional ownership, has launched a groundbreaking $13.75 million IPO for a Stegosaurus fossil.
The fossil, known as “Steg,” is being unearthed in a private plot in northern Wyoming.
MarketWatch reported that Rally cofounder Rob Petrozzo said the offering was valued at $13,75 million. 200,000 shares were available at a price of $68.75 each.
Investors can buy shares today and “Steg”, which is expected to begin trading officially on December 20, 2019.
“Steg” is a unique asset on Rally. Unlike other assets, which are traded like traditional stocks with the option to purchase and sell at any moment, it offers a unique proposition.
Petrozzo says that once shares have been purchased, they can’t be traded on their platform.
Instead, the plan would be to sell “Steg”, likely at a profit within 18-24 months, through an auction, or a private sale. The proceeds would then be distributed among the shareholders.
“This is an exceptional specimen,” said Rob Petrozzo.
He said that “Steg” has already been completed to 67% and that more pieces are being found during the ongoing excavation.
Demand for dinosaur skeletons skyrockets
Dinosaur bones are becoming increasingly popular on the collector’s market. They can fetch multi-million dollar sums.
The growing trend is evident in the $44.6 million purchase of a Stegosaurus “Apex” skeleton by hedge fund billionaire Ken Griffin at a Sotheby’s auction held in July.
Three dinosaur skeletons sold for $15.7 million at Christie’s auction, highlighting the growing interest in prehistoric artifacts.
Petrozzo, highlighting the surge in demand for high-quality minerals, said: “It’s an entirely new market.”
Can fossils be considered a reliable investment?
Despite the hype, some experts are still cautious about investing in dinosaur skeletons.
Stephen Fishler is the CEO of ComicConnect. He points out that there are many variations in quality and completeness.
Fishler said, “We are far from a market where fossils could be considered as reliable investments.”
Fossils are very different. Some are only half-complete, while others can reach 80%.
The value of missing bones is often affected by the use of replicas.
Rally is confident about the quality of “Steg”, describing it a rare and highly desired specimen.
There are many other options for fossil enthusiasts
Not all dinosaur enthusiasts must invest millions.
Collector shows and online marketplaces sell individual bones and teeth for hundreds or even thousands of dollars.
Quincy Hansen is a fossil collector from Fort Collins who regularly spends up to $750 per item on smaller fossils.
Hansen also searches for fossils on the field, sometimes uncovering rare discoveries.
Hansen, who held onto the hope that he would make a major discovery someday, said: “You never know what’ll you discover.”
Rally’s Stegosaurus initial public offering highlights fossils as a potential alternative investment class.
Investors have a rare opportunity to own a piece ancient history, whether it’s a thriving market starting up or a speculative venture.
This post Rally Stegosaurus IPO of $13,75 mn is bringing fossils onto the market. Should you invest in this IPO? This article may be updated as new information is released
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