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What happens in an IPO? – Part 1

simplanations.in

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Re: What happens in an IPO? – Part 1

#11

Post by scoot »

JackPoach wrote: post #3

Thanks for taking time to write this article. I think far too little people remember downturns and don't realize that there are multiple instances when pre-IPO valuations are actually higher than post-IPO. Down rounds aren't uncommon. Also, it's fairly common to see stock prices go down immediately after IPO for the first few months.

> it's fairly common to see stock prices go down immediately after IPO for the first few months.

FaceBook being a classic example. More than halved in value in the first 3 months, now 8.5 X IPO price after 8 years.

Re: What happens in an IPO? – Part 1

#13

Post by renewiltord »

robofanatic wrote: post #7
renewiltord wrote: post #6

Love it. Poor Anil. And “JP Murugan” haha. Warning, though. The article ends before IPO day. Looks like there’s a part 2. Wish there were a simple way to subscribe to that part.

You can subscribe here https://www.simplanations.in/subscribe

Ah thank you, doesn’t that sign me up for everything instead of just this series?

Re: What happens in an IPO? – Part 1

#14

Post by seem_2211 »

burnt_toast wrote: post #8
nomadiccoder wrote: post #4

I really like this style of article. It explains things in a shallow way with an enjoyable narrative. Thats also why books like the Pheonix project are so popular. If I want to know more about the divisions of the large banks I know what the context is and what terms to DDG. Great way to start start the day by learning something new. Cheers Vivek, looking forward to part 2.

Books like that are my favorite. Built to Sell by John Warrillow is a perfect example, and one that I really enjoyed. It teaches the reader how not to run a business via a fictitious story and really opened my eyes to all the things I was doing wrong in my business.

The E Myth is another good example of a business book with a relatively simple message wrapped in an enjoyable narrative.

Re: What happens in an IPO? – Part 1

#15

Post by dang »

mellosouls wrote: post #10

Please add "Part 1" to the title as per the original; sometimes these series (excellent start in this case) aren't completed, and this is a long read to invest (ha!) in. I got all the way to the end to find it was only the first in the series, that should be indicated here.

Added.

Articles that bait their readers into waiting for a part 2 are generally not a good fit for HN. The idea here is to gratify curiosity, not tease it: https://news.ycombinator.com/newsguidelines.html.

Re: What happens in an IPO? – Part 1

#16

Post by daniellarusso »

scoot wrote: post #11
JackPoach wrote: post #3

Thanks for taking time to write this article. I think far too little people remember downturns and don't realize that there are multiple instances when pre-IPO valuations are actually higher than post-IPO. Down rounds aren't uncommon. Also, it's fairly common to see stock prices go down immediately after IPO for the first few months.

> it's fairly common to see stock prices go down immediately after IPO for the first few months. FaceBook being a classic example. More than halved in value in the first 3 months, now 8.5 X IPO price after 8 years.

How badly does that affect folks holding options past the end of the year?

Re: What happens in an IPO? – Part 1

#17

Post by robofanatic »

renewiltord wrote: post #13
robofanatic wrote: post #7

Earlier quoted context omitted.

You can subscribe here https://www.simplanations.in/subscribe

Ah thank you, doesn’t that sign me up for everything instead of just this series?

That sounds cool but I haven't come across a single website that can let you do that. Too much work for very less benefit for the publisher :-)

Re: What happens in an IPO? – Part 1

#19

Post by runbathtime »

Nice approach to explaining an IPO with the narrative, but I think it would be even more helpful to start in the beginning of a share's life when the company is first incorporated, when shares are created from nothing and assigned based on ownership. Talk about Form D filings with the SEC when shares are sold to private investors. Why stocks/equities are even labeled as securities. What are securities and why are they regulated. How private shares are valued/traded. Really the difference between a private company and a public one with respect to shares/valuation/regulation.
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