Initial Public Offering - IPO
The first sale of stock by a private company to the public. IPOs are often issued by smaller, younger companies seeking capital to expand, but can also be done by large privately-owned companies looking to become publicly traded.
In an IPO, the issuer obtains the assistance of an underwriting firm, which helps it determine what type of security to issue (common or preferred), best offering price and time to bring it to market.
Also referred to as a "public offering".
IPOs can be a risky investment. For the individual investor, it is tough to predict what the stock will do on its initial day of trading and in the near future since there is often little historical data with which to analyze the company. Also, most IPOs are of companies going through a transitory growth period, and they are therefore subject to additional uncertainty regarding their future value.
All users welcome. Discussion of IPO past, present and future.
As always, Do your own DD and perhaps we can gain some insight on what makes some of these IPO's fly and some dive.
For example, JCREW (JCG) is up 34.7%, since 06/28....
and Vonage has taken a hit of -54.9% since 06/09 (OUCH)!!
Solid IHUB Boards*:
"The massive amount of numbers in a company's financial statement can be bewildering and intimidating to many investors. On the other hand, if you know how to read them, the financial statements are a gold mine of information. Those who feel challenged in the aspects of fundamental analysis should take comfort knowing that our team will not only assist you in learning this information, but will make it simple to do so."~This board works in tandem with TA or Die http://www.investorshub.com/boards/board.asp?board_id=4360"
TOXIC FILINGS : http://www.investorshub.com/boards/board.asp?board_id=4318
[i]"This a heads up board for posting recent PRE/DEF-14C REGDEX SB-2 Form 1-E / 2-E S-1 / S-2 / S-3 424B1 424B3 S-8 and EFFECT filings. TOXIC CHARTS that correspond to the filings on this board can be found here for easy visualization of how close the dilution is to being spent. http://www.investorshub.com/boards/board.asp?board_id=6016"
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Check your prospectus before buying...always! http://www.sec.gov
Also, please check out: http://www.infinitistocks.com IPO section
MEET THE S-1:
A very clear and easy to follow description of this very important and informative filing.
IPO Quiet Period Dates
Upcoming IPO Quiet Period Dates
IPO Quiet Period Dates
Upcoming IPO Quiet Period Dates
Company Name Symbol Offer Date Lead Underwriter Quiet Period Expires
Alternative Asset Management Acquisition AMV-U 8/1/07 Citi 9/10/07
Dolan Media DM 8/1/07 Goldman Sachs 9/10/07
Genpact Limited G 8/1/07 Morgan Stanley 9/10/07
Sucampo Pharmaceuticals SCMP 8/1/07 Cowen & Company 9/10/07
Concho Resources CXO 8/2/07 J.P. Morgan 9/11/07
Virtusa VRTU 8/2/07 J.P. Morgan 9/11/07
Quicksilver Gas Services LP KGS 8/6/07 UBS Investment Bank 9/15/07
E-House (China) Holdings EJ 8/7/07 Credit Suisse 9/16/07
HireRight HIRE 8/7/07 Credit Suisse 9/16/07
Masimo Corporation MASI 8/7/07 Piper Jaffray 9/16/07
DemandTec DMAN 8/8/07 Morgan Stanley 9/17/07
WuXi PharmaTech WX 8/8/07 Credit Suisse 9/17/07
Horsehead Holding ZINC 8/9/07 Friedman Billings 9/18/07
MercadoLibre MELI 8/9/07 J.P. Morgan 9/18/07
Paragon Shipping PRGN 8/9/07 UBS Investment Bank 9/18/07
VMware VMW 8/13/07 Citi 9/22/07
Cosan Limited CZZ 8/15/07 Credit Suisse 9/24/07
Brokers for getting into Primary Market offerings IPO:
"We put the Public back in IPO"
Offering MarketplaceTM enables FBRDirect customers to learn about IPO's and secondary offerings and place a Conditional Offer (C.O.) to buy shares of offerings online.
FBR will make up to 20% of the shares FBR receives in an offering available to online investors.
Due to the limited number of securities distributed by FBRDirect, no assurances may be made that any particular customer will receive an allocation of securities. *
*$10,000.00 Minimum to open an account
E Investment Bank (Wedbush Morgan Securites)
**$2000.00 to open an account
27 Definitions...used in IPO Financial Analysis
% offered in IPO Expected IPO proceeds divided by market value
Annualized Earnings(loss) Quarterly earnings (loss) multiplied by four
Annualized Sales Quarterly sales multiplied by four. Not used for seasonal businesses
Market value Price per share times number of shares issued & outstanding
Price-to-Book Value Market value divided by Book Value
Price-to-Earnings (loss) Market value divided by Annualized Earnings (loss)
Price-to-Sales Market value divided by Annualized Sales
Price-to-Tangible Bk Value Market value divided by Tangible Book Value
Selling Shareholders Pre-IPO investors who use the IPO to sell their stock
Use of Proceeds Usually for working capital, debt repayment, or selling shareholders
Profit/Loss Income Statement
Amortization Non-cash (income statement) charge, applies to 'Goodwill'
Cost of GoodsSold(COGS) Direct cost of goods, not including adv, sales, marketing, etc.
Depreciation Non-cash charge reducing an asset's value: a building 'depreciates'
Equity Charges Non-cash compensation charges, usually related to stock options
Excluded charges Usually equity compensation, amortization, sometimes depreciation
Gross Margin Sales minus Cost of Goods Sold (COGS)
Gross Margin % Gross Margin divided by Sales
Income Statement Sales & expenses over a specified time, similar to a tax return
Profit % Profit divided by Sales
Balance Sheet A snapshot on a particular day of assets & liabilities
Book Value Shareholder's Equity on the balance sheet
Current Assets Assets which can be converted to cash within 12 months
Current Liabilities Liabilities which are due and payable within the next 12 months
Goodwill Price paid (in acquiring a business) over Tangible Book Value
Shareholders Equity Total assets less all liabilities (current + long term)
Tangible Book Value Book Value less 'goodwill asset accounts' on the balance sheet
Working Capital Current assets less current liabilities
Market Cap $30,775.0
Net Income ($686)
Shares Offered 406.0 mm
J.P. Morgan -Joint Book Runner
Goldman Sachs- Joint Book Runner
Banc of America -Joint Book Runner
Citi -Joint Book Runner
HSBC Corporation -Joint Book Runner
Merrill Lynch- Joint Book Runner
UBS Investment Bank- Joint Book Runner
Wachovia Securities- Joint Book Runner
CIBC World Markets- Co Manager
Daiwa Securities -Co Manager
Mitsubishi UFJ Securities -Co Manager
Piper Jaffray -Co Manager
RBC Capital Markets- Co Manager
Suntrust Robinson -Co Manager
Wells Fargo Securities -Co Manager
ABN AMRO -Co Manager
Barclays Capital -Co Manager
Calyon Securities -Co Manager
Credit Suisse- Co Manager
P.O. Box 8999
San Francisco, CA
You can at least look at the S4 and it's ammendments thus far, as well as some 425's ....