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employer ipo opportunity

Posted on 5/3/18 at 3:39 pm
Posted by 3morereps
The Gym
Member since Jun 2015
6735 posts
Posted on 5/3/18 at 3:39 pm
anyone ever work for a company that has gone public?

My employer will be having an ipo in the coming months and has offered us, employees, a chance to participate without paying commissions. what is the money boards thoughts on this? I am mostly a passive, vanguard etf investor, but i don't want to hear colleagues bragging about a big ipo pop while i am chilling in VOO. Also, a little action sounds fun.

TIA money board baws.
Posted by Retrograde
TX
Member since Jul 2014
2914 posts
Posted on 5/3/18 at 3:45 pm to
Depends on the company. Our sister company split and offered an IPO that I knew would tank, and I just laughed and pointed.

Posted by Joshjrn
Baton Rouge
Member since Dec 2008
31726 posts
Posted on 5/3/18 at 3:58 pm to
Your only incentive is not paying commissions? Sounds like your company wants their employees to drive up the price.

In short, you're not getting much of a benefit, so it's simply a matter of what you think about the valuation of the company at the IPO.
Posted by OceanMan
Member since Mar 2010
22784 posts
Posted on 5/3/18 at 4:07 pm to
This
Posted by white perch
the bright, happy side of hell
Member since Apr 2012
7578 posts
Posted on 5/3/18 at 4:10 pm to
You can buy any company you want commission free through Robinhood
Posted by gpburdell
ATL
Member since Jun 2015
1579 posts
Posted on 5/3/18 at 4:50 pm to
No stock options? I assume the OP's employer is allowing employees to buy at the IPO price before it hits the secondary markets.
Posted by raw dog
Baton Rouge
Member since Nov 2011
483 posts
Posted on 5/3/18 at 5:07 pm to
Do you get in at the IPO price or the first trade? Is there any lock up period?

If you get in at the IPO price and there's no lock up, maybe have a little fun.
Posted by Drury01
Lafayette
Member since Jan 2015
596 posts
Posted on 5/3/18 at 6:21 pm to
One of the lessons from the Enron implosion was being careful to not be too employer reliant—paycheck, 401k and/or direct stock purchases. Diversification can provide some buffers for risk management.
Posted by 3morereps
The Gym
Member since Jun 2015
6735 posts
Posted on 5/3/18 at 6:35 pm to
quote:

I assume the OP's employer is allowing employees to buy at the IPO price before it hits the secondary markets


this, to get ipo price otherwise, one needs to be an accredited investor i believe ($200k investable)
Posted by 3morereps
The Gym
Member since Jun 2015
6735 posts
Posted on 5/3/18 at 6:36 pm to
quote:

Do you get in at the IPO price or the first trade? Is there any lock up period?


ipo price & 6 month lock up.
Posted by 3morereps
The Gym
Member since Jun 2015
6735 posts
Posted on 5/3/18 at 6:38 pm to
quote:

Your only incentive is not paying commissions?


and i wouldn't have access to ipo pricing as i am not an accreditted investor
This post was edited on 5/3/18 at 6:40 pm
Posted by Doubledown11
Member since Jun 2017
48 posts
Posted on 5/3/18 at 6:47 pm to
Forget all the noise pisted above. Do you have special or detailed knowledge of the books? Do you know of pricing inefficiencies that someone is missing?

Whovever is brokering the ipo has a fiduciary responsibility to price correctly, but that doesn't mean you dont know more about the company or future price pressure than them.

Ie, you are personally working on a deal/project that will increase EBITDA by 20percent in 12 mos, in that case, maybe load up. Maybe not.
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