5 ms·

Would be great if someone with knowledge on how to read an S1 could help me figure out these two basic questions: What percentage of the company gets sold in t

by TekMol 5y ago

Would be great if someone with knowledge on how to read an S1 could help me figure out these two basic questions: What percentage of the company gets sold in the IPO? And does that money go into the company or does it go to existing shareholders?

adamsvystun 5y ago
> What percentage of the company gets sold in the IPO? S1 does not specify the amount. > And does that money go into the company or does it go to existing shareholders? The money goes to the company.
- otterley 5y ago
  ... after commissions are paid to the investment bankers involved in the offering.
rogerkirkness 5y ago
The PO in IPO is public offering, meaning new shares are created. So generally speaking, the amount raised goes to the company. Dilution is a factor of what's raised and the vaulation. If you raise a 10% round, you dilute by 10%, so 10% is sold. It varies by company and preference. Existing shareholders can typically sell after the lockup (for common share holders, like founders and employees) and at any time (for preferred share holders, whose shares convert into unrestricted common shares as part of the IPO).
ac29 5y ago
This S1 does not say how many shares they expect to sell, so at this time its unclear what percentage of the company new investors will hold. Presumably before the IPO date, it will be updated so investors have an understanding of what they are buying.
- TekMol 5y ago
  Thanks. How does one find the complete S1 when it is updated? For example, how can this information be found for Coinbase?
  - phonon 5y ago
    SEC/Edgar Hashicorp https://www.sec.gov/edgar/search/#/dateRange=custom&ciks=0001720671&entityName=HashiCorp%252C%2520Inc.%2520(CIK%25200001720671)&startdt=1995-06-01&enddt=2021-11-04 https://www.sec.gov/edgar/search/#/dateRange=custom&ciks=000... Coinbase https://www.sec.gov/edgar/search/#/dateRange=custom&ciks=0001679788&entityName=Coinbase%2520Global%252C%2520Inc.%2520(COIN)%2520(CIK%25200001679788)&startdt=1995-06-01&enddt=2021-11-04 https://www.sec.gov/edgar/search/#/dateRange=custom&ciks=000...
    - TekMol 5y ago
      And in these results is the info on what percentage of coinbase has been sold via the IPO? Where?
chernevik 5y ago
IPOs sometimes sell shares held by existing shareholders. The final S-1 should disclose any sales by existing shareholders. When you see them in roadshow, check for the final S-1. Statements that proceeds will go to the company are not necessarily correct.

by TekMol 5y ago

adamsvystun 5y ago

> What percentage of the company gets sold in the IPO? S1 does not specify the amount. > And does that money go into the company or does it go to existing shareholders? The money goes to the company.

otterley 5y ago
... after commissions are paid to the investment bankers involved in the offering.

rogerkirkness 5y ago

The PO in IPO is public offering, meaning new shares are created. So generally speaking, the amount raised goes to the company. Dilution is a factor of what's raised and the vaulation. If you raise a 10% round, you dilute by 10%, so 10% is sold. It varies by company and preference. Existing shareholders can typically sell after the lockup (for common share holders, like founders and employees) and at any time (for preferred share holders, whose shares convert into unrestricted common shares as part of the IPO).

ac29 5y ago

This S1 does not say how many shares they expect to sell, so at this time its unclear what percentage of the company new investors will hold. Presumably before the IPO date, it will be updated so investors have an understanding of what they are buying.

TekMol 5y ago
Thanks. How does one find the complete S1 when it is updated? For example, how can this information be found for Coinbase?
- phonon 5y ago
  SEC/Edgar Hashicorp https://www.sec.gov/edgar/search/#/dateRange=custom&ciks=0001720671&entityName=HashiCorp%252C%2520Inc.%2520(CIK%25200001720671)&startdt=1995-06-01&enddt=2021-11-04 https://www.sec.gov/edgar/search/#/dateRange=custom&ciks=000... Coinbase https://www.sec.gov/edgar/search/#/dateRange=custom&ciks=0001679788&entityName=Coinbase%2520Global%252C%2520Inc.%2520(COIN)%2520(CIK%25200001679788)&startdt=1995-06-01&enddt=2021-11-04 https://www.sec.gov/edgar/search/#/dateRange=custom&ciks=000...
  - TekMol 5y ago
    And in these results is the info on what percentage of coinbase has been sold via the IPO? Where?

chernevik 5y ago

IPOs sometimes sell shares held by existing shareholders. The final S-1 should disclose any sales by existing shareholders. When you see them in roadshow, check for the final S-1. Statements that proceeds will go to the company are not necessarily correct.