I noticed that some stocks could have two tickers (such as AGBA/AGBAU and LOAC/LOACU) and although the underlying company is the same, the prices for tickers with or without U are slightly different. I googled it but failed to understand what exactly U means.

Some sites, such as Investopedia, does say that the fifth letter "U" means units. But then what does "unit" mean here?

1 Answer 1


When some stocks debut on the NASDAQ as an IPO, they come in the form of a unit which represents several components. The U stands for Unit. Here are the details from the 5/14/19 press release:

In the case of ABBAU, it was priced at $10.00 per unit.

Each unit consisted of one ordinary share, one warrant to purchase one-half of one ordinary share, and one right to receive one-tenth of one ordinary share upon the consummation of the Company's initial business combination.

Once the securities comprising the units begin separate trading, the ordinary shares, rights and warrants are expected to be listed on NASDAQ under the symbols "AGBA," "AGBAW," and "AGBAR," respectively.

  • Thanks Bob. I have another question: what is the purpose of constructing an IPO this way? Would this offer any benefits to the issuer compared to simply offering ordinary shares?
    – user92217
    Dec 9, 2019 at 6:01
  • Sometimes a unit may include more than one common share. The advantage of issuing a unit is that the company creates two or more securities in one fell swoop (stock, right, warrant) and that's mroe cost effective than initially IPOing just shares and then creating the other securities later. In addition, these tend to be small cap stocks which will command low stock prices so issuing more than one security commands a larger IPO price which means more cash for the company. Dec 9, 2019 at 13:10

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