Decentral Life IR Team - More clarity on RS / Up-listing Strategy !
Decentral Life IR Team:
30 minutes ago
The question continues to come up about the market cap and share price, at the time of the R/S. So we addressed that in a communication string below. If you haven’t seen the response, here it is again…
Does everyone understand how an investment bank uses the reports provided by their Buy Side Analyst? …specifically in an IPO or up listing of the company that is being supported by their brokers.
Buy side analysts perform financial research on the company, deriving formulas and strategies that will help the buy side firm (investment bank, and their institutional investor clients) earn the highest possible risk-adjusted return on their capital investment.
An analysts research is used to build financial models for growth of the companies they report on. Along with other KPI’s, this includes market cap comparisons on private and public companies that closely resemble the company they are reporting on. (In our case, that comparison report used Y Combinator, Techstars, and Angelpad to name just a few.)
The report closely pegs the target stock price (or market cap) that the brokers will support. This step is generally finalized after the completion of the roadshow that takes place prior to the IPO or up listing. The feedback from the roadshow provides important guidance on institutional support during the IPO or up listing.
It is very important to note that a buy side analyst recommendations are made available exclusively to the investment bank that employs them. It is not made public… meaning retail shareholders never know what the brokers and their institutional investor clients know from that report.
So to assume that retail shareholder support of a stock at the time of an IPO or up listing, will determine the market cap previously established for that company by the investment bankers and their buy side analyst, is an inaccurate assumption.
We hope this provides some additional clarity… clearing up any confusion on how we arrived at our target market cap (and thus, minimum stock price of $0.05 for the R/S.)
~ $WDLF / Decentral Life ~
~ Tic, toc, . . .
