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With earnings of about $500 million in the first half of 2010, and 44% growth since last year, isn't a $100M IPO really, really conservative? Does this mean th

by relix 16y ago

With earnings of about $500 million in the first half of 2010, and 44% growth since last year, isn't a $100M IPO really, really conservative? Does this mean the stocks will jump sky high the second it's on the market?

shimon 16y ago
Technical question regarding IPOs: is the offering for the entire stock of the company, or just a fraction, and how would potential investors know what fraction? $100m would be low for all skype share but high for 2%.
- awad 16y ago
  A (pre-determined and explicitly stated) fraction. Afterwards, however, shareholders are allowed to sell off their shares, provided they meet any lock-in/holding period requirements first. So, a founder might have to wait 6 months before he can unload his or her shares.
ollerac 16y ago
They're probably putting a relatively small percentage of the company on the public market. I don't know how much of Skype is being sold, but here's an example from Wikipedia: "Google's initial public offering (IPO) took place five years later on August 19, 2004. The company offered 19,605,052 shares at a price of $85 per share. Shares were sold in a unique online auction format using a system built by Morgan Stanley and Credit Suisse, underwriters for the deal. The sale of $1.67 billion gave Google a market capitalization of more than $23 billion. The vast majority of the 271 million shares remained under the control of Google, and many Google employees became instant paper millionaires. Yahoo!, a competitor of Google, also benefited because it owned 8.4 million shares of Google before the IPO took place."
jonknee 16y ago
Revenue of $400m in the first half of 2010, that's a huge difference. Their net income was $13m.
- ojbyrne 16y ago
  Even worse, on techcrunch it says that most of that is from interest income (they must have a lot of cash in the bank). Cash from operations for the same time period is only $1.4 million.

by relix 16y ago

shimon 16y ago

Technical question regarding IPOs: is the offering for the entire stock of the company, or just a fraction, and how would potential investors know what fraction? $100m would be low for all skype share but high for 2%.

awad 16y ago
A (pre-determined and explicitly stated) fraction. Afterwards, however, shareholders are allowed to sell off their shares, provided they meet any lock-in/holding period requirements first. So, a founder might have to wait 6 months before he can unload his or her shares.

ollerac 16y ago

They're probably putting a relatively small percentage of the company on the public market. I don't know how much of Skype is being sold, but here's an example from Wikipedia: "Google's initial public offering (IPO) took place five years later on August 19, 2004. The company offered 19,605,052 shares at a price of $85 per share. Shares were sold in a unique online auction format using a system built by Morgan Stanley and Credit Suisse, underwriters for the deal. The sale of $1.67 billion gave Google a market capitalization of more than $23 billion. The vast majority of the 271 million shares remained under the control of Google, and many Google employees became instant paper millionaires. Yahoo!, a competitor of Google, also benefited because it owned 8.4 million shares of Google before the IPO took place."

jonknee 16y ago

Revenue of $400m in the first half of 2010, that's a huge difference. Their net income was $13m.

ojbyrne 16y ago
Even worse, on techcrunch it says that most of that is from interest income (they must have a lot of cash in the bank). Cash from operations for the same time period is only $1.4 million.