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As someone who does not understand how IPO works. So they do not need to show whole “big picture” of their revenue vs costs before going public? Wouldn’t build

As someone who does not understand how IPO works. So they do not need to show whole “big picture” of their revenue vs costs before going public? Wouldn’t build it trust to show they are healthy company worth investing besides speculation? (It must be naive question from)

pineaux 2mo ago
No, as i understand it: the underwriters are the banks that write out the shares and give a sort of guarantee. So they decide the price of the IPO.
wtf_is_up 2mo ago
Yes, they have to file an S-1 with the SEC as part of the process. This lays out business operations in detail, including risks. For instance, here is the SpaceX S-1: https://www.sec.gov/Archives/edgar/data/1181412/000162828026036936/spaceexplorationtechnologi.htm https://www.sec.gov/Archives/edgar/data/1181412/000162828026...
aix1 2mo ago
Yes they do. They have to file an S-1 with the SEC, which will be made public about a month before the IPO. The S-1 has to include, among other things, three years of audited financial statements, plus interim statements (unaudited). It will cover both revenue and expenses, the latter breaking out things like cost of revenue, R&D, sales and marketing etc. Based on the (unofficial but reported) IPO target date of late Sep to early Oct, the S-1 will have to be made public in a few weeks from now.
sandworm101 2mo ago
They do, but the accounting rules change based on context. They will file an S1 today outlining how they are rolling in profits then, come tax time, suddenly they are hemorrhaging money. Flesh-and-blood investors have lost all trust in financial filings. See SpaceX.
- budsniffer952 2mo ago
  You think Elon Musk fans were reading the financials??? The financials were always bad. Everyone with half a brain avoided the IPO. Did you?
  - sandworm101 2mo ago
    Exactly. The financial filings don't matter. Even the people that read them immediately dismiss them.
budsniffer952 2mo ago
Of course they do. The HN braintrust is mostly financially illiterate and sees conspiracies and fraud everywhere. This is the biggest capital buildout on history. Saying money will be wasted is not insightful, it's obvious.

pineaux 2mo ago

No, as i understand it: the underwriters are the banks that write out the shares and give a sort of guarantee. So they decide the price of the IPO.

wtf_is_up 2mo ago

Yes, they have to file an S-1 with the SEC as part of the process. This lays out business operations in detail, including risks. For instance, here is the SpaceX S-1: https://www.sec.gov/Archives/edgar/data/1181412/000162828026036936/spaceexplorationtechnologi.htm https://www.sec.gov/Archives/edgar/data/1181412/000162828026...

aix1 2mo ago

Yes they do. They have to file an S-1 with the SEC, which will be made public about a month before the IPO. The S-1 has to include, among other things, three years of audited financial statements, plus interim statements (unaudited). It will cover both revenue and expenses, the latter breaking out things like cost of revenue, R&D, sales and marketing etc. Based on the (unofficial but reported) IPO target date of late Sep to early Oct, the S-1 will have to be made public in a few weeks from now.

sandworm101 2mo ago

They do, but the accounting rules change based on context. They will file an S1 today outlining how they are rolling in profits then, come tax time, suddenly they are hemorrhaging money. Flesh-and-blood investors have lost all trust in financial filings. See SpaceX.

budsniffer952 2mo ago
You think Elon Musk fans were reading the financials??? The financials were always bad. Everyone with half a brain avoided the IPO. Did you?
- sandworm101 2mo ago
  Exactly. The financial filings don't matter. Even the people that read them immediately dismiss them.

budsniffer952 2mo ago

Of course they do. The HN braintrust is mostly financially illiterate and sees conspiracies and fraud everywhere. This is the biggest capital buildout on history. Saying money will be wasted is not insightful, it's obvious.