Combine elements of “Indiana Jones” and “Jurassic Park,” and you have the latest investment opportunity from Rally.
Stegosaurus Skeleton: Fractional investment platform Rally is offering investors access to a one-of-a-kind dinosaur skeleton, a full Stegosaurus that is still being excavated. The offering comes months after Citadel LLC CEO Ken Griffin paid a record $44.6 million for a similar Stegosaurus skeleton.
The unique IPO will allow investors to buy shares of the Stegosaurus for $68.75 early in the process and capture profits in the future if the full skeleton is sold for more than its initial $13.75 million valuation.
Rally will open the IPO at 12 p.m. ET on Dec. 20 and 200,000 total shares will be available until the offering sells out.
Rally partnered on the excavation with a team led by well-known fossil expert Thomas Lindgren.
"We've been working with Tom Lindgren and this geology team since the start of Rally in 2017," Rally co-founder and Chief Product Officer Rob Petrozzo told Benzinga.
Seeking out a full skeleton of one of what Petrozzo called the "Big 3 dinosaurs," Rally has been requesting a T-Rex, Triceratops or Stegosaurus and got a call from Lindgren earlier this year alerting them to the unique opportunity.
"We had the opportunity to basically get a first look — make a down payment, negotiate a price for the total skeleton no matter the outcome, and we went ahead and locked in the deal."
Petrozzo said the bones were found so far to be in excellent condition. To date, with an excavation expected to be complete next year, the skeleton is at 67% bone volume, which "puts this in the top tier of complete skeletons."
"To see it come to life and continue to get updates from the lab as more bones are found has been incredible to be a part of, and we can't wait to deliver that same excitement to investors."
The offering will be Rally's largest in company history by a magnitude of around 7x based on the valuation and will also likely be the most unique and rarest offering for the company, Petrozzo said.
Skeleton Rarity: According to Rally, there are less than 10 full Stegosaurus skeletons in current existence, making this offering extremely unique and the potential final value significant.
"Examples like this are extremely rare. Full Stegosaurus skeletons in particular are some of the rarest dinosaur specimens in the world, with only a handful on display or in private collections around the world," Petrozzo told Benzinga.
For comparison, the Rally Stegosaurus is estimated at around 20 feet long and the current bone volume is 67%. The skeleton Griffin bought was 23 feet long and had 79% bone volume.
Unlike other assets like watches and trading cards, which are also available for investment on Rally, dinosaur skeletons take years of "intense excavation and paleontology work."
The U.S. is one of the limited places around the world where the discovery and sale of dinosaur bones is legal, Petrozzo added. Many fossil-rich countries limit the sale and export of dinosaur skeletons.
Museum Quality Piece in Museum Setting: While the final owner of the Stegosaurus skeleton could end up being a museum, the unique piece will get a museum setting before it is auctioned off or sold to a private bidder.
Rally currently has several fossils available as fractional assets, including a Triceratops skull valued at $285,000, which it displays at its New York museum.
"It became a stopping point for every kid that walked down Broadway," Petrozzo said of the fossil located in the front window.
The Stegosaurus skeleton is expected to be displayed in September 2025 in New York at a pop-up location or another museum location that can accommodate the larger fossil according to Petrozzo. The skeleton will be surrounded by other pieces from Rally and museum pieces on loan that could find their way onto Rally in the future.
"The Stegosaurus will be the centerpiece."
Petrozzo told Benzinga he wants there to be activations for families and make the display an educational experience that will "complement the investment pieces."
"We have an incredible opportunity to bring the story of this Stegosaurus to life here in the city."
Investment Opportunity: With an initial offering valuation of $68.75 per share and $13.75 million overall, investors can follow the excavation process with regular updates and later see the dinosaur skeleton on display.
Rally also plans to offer the asset for trading in several months after the offering closes, which could offer investors an opportunity to sell shares for a higher amount if people missed out on the initial offering.
That process will be followed by a sale process either via private sale or auction, with an expected date of January 2026.
Along with the record Griffin paid for the Stegosaurus known as "Apex" in 2024, a Tyrannosaurus Rex skeleton called "Stan" sold for $31.8 million in 2020.
Increased demand from museums and billionaires has led to more attention for full skeletons like the one Rally is offering.
"Dinosaurs are unique in that they are relevant to nearly all users on Rally. The dinosaur is 160 million years old, but it's as relevant now as it's ever been and it will be just as relevant generations from now," Petrozzo said.
Petrozzo said the recent attention from private equity and institutional investors shows that dinosaur fossils are becoming an extremely relevant asset class.
"Dinosaurs aren't just for kids anymore."
Petrozzo told Benzinga that the opportunity to get into the investment while the excavation is going on and the valuation amount has attracted a strong response from firms and high-net-worth individuals ahead of the offering.
Petrozzo named Leonardo DiCaprio, Nicolas Cage and Jeff Bezos among the notable names of past investments in dinosaur fossils.
An offer from a private investor before the auction process would go to a shareholder vote.
"We want the most advantageous outcome for everyone involved. This space is extremely hot right now and inventory is so low."
While investors may have to wait for the full return on their investment, Petrozzo said this could be a welcome change of pace from the current crypto and market dynamics that are used to 24/7 liquidity.
"That nonstop action, to me, is the enemy of rational investing."
Petrozzo said a dinosaur fossil that is 160 million years old could be at the top of the list of global assets "that will stand the test of time."
What's Next: Known for offering investment access to items like video games, books, trading cards, sports memorabilia, rare automobiles and more, Petrozzo said Rally is looking to expand into rarer items.
"When we have the chance to bring an original manuscript, or a test-press of a card, or prototype of a vehicle to Rally, those are the assets we will do our best to acquire," Petrozzo said. "That's where our focus is for 2025."
Petrozzo said Rally is looking to offer intangible assets or items that can grow and expand beyond just the physical asset.
Rally has also taken several of its items to auction, helping to complete exits for investors. This could include investors looking for more liquidity to invest in other categories or for investors to enjoy significant returns in hot categories.
"More methods of getting investors the liquidity they want is always top of mind, and full exits have the ability to do that effectively when the timing is right."
Read Next:
Photo: Courtesy Rally
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
