Quiet Period:
After filing for an IPO, companies enter a quiet period where they limit publicity to avoid influencing stock prices unfairly.
Dutch Auctions:
Google famously used a Dutch auction for its IPO, allowing all investors to bid on the same terms.
Direct Listings:
Unlike traditional IPOs, direct listings allow companies to go public without issuing new shares or raising capital.
Lock-Up Period:
Insiders and early investors in an IPO are typically restricted from selling their shares for a certain duration post-IPO.
Underwriters’ Greenshoe Option:
This provision allows underwriters to buy additional shares from the company at the offering price.
Red Herring Prospectus:
A preliminary IPO document that outlines the company's business but lacks key details, like the offer price.
Quiet Filing:
Companies can confidentially file for an IPO with the SEC, keeping their plans under wraps until later stages.
IPO Roadshow:
Companies conduct roadshows to pitch their stock to potential investors before going public.
SPACs vs. Traditional IPOs:
Special Purpose Acquisition Companies (SPACs) offer an alternative route to going public compared to traditional IPOs.
Flipping Shares:
Some IPO investors quickly sell their shares for a profit immediately after the stock starts trading publicly.
Regulation A+:
This allows smaller companies to raise capital from the public without extensive SEC registration requirements.
IPO Pop:
The initial surge in stock price on an IPO day is known as the IPO pop, fueled by investor excitement.
Quiet Period Expiration:
After the quiet period ends, analysts from the underwriting banks can publish reports, affecting stock prices.
FOMO & IPOs:
Fear of Missing Out (FOMO) often drives investors to rush into buying IPO shares, impacting market demand.
Market Timing:
Companies strategically choose when to go public based on market conditions, aiming for optimal investor interest.