5 ms·
What happens in an IPO? – Part 1
- deleted 5y ago[deleted]
- JackPoach 5y agoThanks 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.
- scoot 5y ago> 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.
- daniellarusso 5y agoHow badly does that affect folks holding options past the end of the year?
- nomadiccoder 5y agoI 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.
- burnt_toast 5y agoBooks 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.
- seem_2211 5y agoThe E Myth is another good example of a business book with a relatively simple message wrapped in an enjoyable narrative.
- salihveseli 5y agoHell of a story teller, I enjoyed it.
- renewiltord 5y agoLove 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.
- robofanatic 5y agoYou can subscribe here https://www.simplanations.in/subscribe https://www.simplanations.in/subscribe
- renewiltord 5y agoAh thank you, doesn’t that sign me up for everything instead of just this series?
- robofanatic 5y agoThat 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 :-)
- briamn 5y agoProps to the author! Very well-written to include a lot of information in an engaging narrative style. I look forward to part 2.
- mellosouls 5y agoPlease 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.
- dang 5y agoAdded. 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 https://news.ycombinator.com/newsguidelines.html.
- zzzpaz 5y agoBank make money Insiders make money Who buy the shares at IPO price most likely make money All the rest take the risk
- varsh8th 5y agoLoved the narrative style, hope part 2 doesn't take as long as avatar sequels :)
- runbathtime 5y agoNice 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.