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The IPO Thread

3,280 Views | 20 Replies | Last: 3 yr ago by MaroonDynasty
John The Savage
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***My apologies if there has been another one but it didn't show up in the search function***

For the week of 9/14 two IPO's are creating a buzz.

Snowflake (SNOW) - Amazon.com Inc. (NASDAQ: AMZN) and Microsoft Corp. (NASDAQ: MSFT) are both listed in the Snowflake Inc. (NYSE: SNOW) filing as competitors and platform providers. Snowflake helps mobilize the world's data. Snowflake is seeking to sell 28 million shares at a range of $75 to $85. Snowflake saw second quarter revenue up 121% to $133 million. The company has over 3,100 customers, with 56 reaching the $1 million revenue mark. Snowflake would raise $2.7 billion at the high end and be valued at more than $20 billion. Berkshire Hathaway (NYSE: BRKA) and Salesforce Ventures LLC (NYSE: CRM) both pledged to invest $250 million each into the data company.


JFrog: ( FROG) plans on selling 11.6 million shares in arrange of $33 to $37. The company calls itself a liquid software company and provides end-to-end continuous software release management. JFrog's customer base of 5,800 customers includes 75% of the Fortune 100. JFrog reported revenue of $104.7 million in 2019, a 65% year over year increase.

JFrog offers "end-to-end" for program and software/program developers

https://finance.yahoo.com/news/ipo-outlook-week-snowflake-amwell-142952339.html
Foamcows
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AG
fwiw, i am in the tech industry and have heard of both of these companies solutions
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John The Savage
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Any thoughts on these IPO's? Or Unity and Sumo Logic?

JFrog interests me because it's actually close to reaching profitability.

I know $SNOW is a tech darling at the moment but cloud computing and analytics seems like a crowded space and the safer way to invest in this via CRM and Berkshire
“A really efficient totalitarian state would be one in which the all-powerful executive of political bosses and their army of managers control a population of slaves who do not have to be coerced, because they love their servitude.”
Engine10
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AG
SNOW amended opening range higher $100-$110 - way to pricey for me. Legit company though.
Definitely Not A Cop
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AG
https://www.barrons.com/articles/grail-plans-ipo-51599685087

Saw this one. Supposed to be a near universal cancer screening test that Bezos is supposed to be pouring money into.
Foamcows
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AG
Snow just opened at 285 and frog at 70
John The Savage
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$285 opening puts it at 9x it's initial pricing.

Frog is 2x

I'm holding my money for GDRX next week.
“A really efficient totalitarian state would be one in which the all-powerful executive of political bosses and their army of managers control a population of slaves who do not have to be coerced, because they love their servitude.”
Foamcows
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AG
both are currently sliding downhill...
MaroonDynasty
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Thinking about jumping into RXT or RKT soon.
agie95
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AG
If you are interested in IPO investing you might take a look at Microventures.com or Equityzen.com. Both offer opportunities to purchase late-stage companies prior to the IPO. Of course, there are no guarantees the company is going to IPO. Startengine.com will be doing the same starting in a month or so.

I do want to add that most, if not all, of the late-stage ones require you to be an accredited investor. If you are interested in early-stage you don't have to be an accredited investor for a lot of them.
John The Savage
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Snow down another 10% today, FROG saying even.

SUMO (Sumo Logic) came out today at $27. Interesting company but my gut feels like this is really starting to become a crowded space. I'll defer to the Tech guys as to whether or not this is actually a worth while investment.

“A really efficient totalitarian state would be one in which the all-powerful executive of political bosses and their army of managers control a population of slaves who do not have to be coerced, because they love their servitude.”
deadbq03
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AG
How often do IPOs go up and stay up? Seems like every one I've ever paid attention to (which admittedly is only like 20 or so) drops below the the initial offering price within the first 6 months or so.

Seems like IPOs are a good deal for everyone involved, except the public. And working at a place that is looking to IPO, I know that when it happens, we're gonna lose at least 25% of our workforce due to the windfall allowing many on our staff to retire early. I wouldn't trust our current fundamentals to continue once that happens.

Certainly there are plenty of companies that aren't as generous as mine in granting PE units to their employees, but at the very least, you have plenty of situations where the old leadership gets a windfall and either moves on to a new project or retires rather than try to lead under the mercy of the public shareholders' board.
jh0400
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I don't know your company, but I would keep in mind that it can be difficult to cash out following an IPO due to lockups and insider trading restrictions. Open window restrictions could block out up to half the year, and depending on window closure in relation to IPO, you could be looking at seven months between IPO and ability to sell.
agie95
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I have shares of Palantir and a could sell a small percentage when it IPO's, but most I have to keep for 180 days.
deadbq03
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jh0400 said:

I don't know your company, but I would keep in mind that it can be difficult to cash out following an IPO due to lockups and insider trading restrictions. Open window restrictions could block out up to half the year, and depending on window closure in relation to IPO, you could be looking at seven months between IPO and ability to sell.
Fair points and I'm not smart enough to know the answers to this, but I do know that we don't actually own any part of the real company, we own a separate LLC that then in turn owns a portion of the actual company. No idea if that makes things easier or not, but what I do know is that we've got some shrewd folks here and all the guys who've been here longer than me say it's gonna be a big payday for them. But even if it takes 6 months, the point is that many/most of the folks that got us to where we are today are planning to bail.

Again, I have no idea how common that attitude is at pre-IPO companies, but from my limited perspective, I won't ever invest in an IPO because there are just too many variables at play which could result in it being a very different company post-IPO than it was when it was private (to include dealing with all the extra regulatory BS that comes with being public).

But someone has to I suppose, so I admire folks who are willing to take that plunge.
John The Savage
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“A really efficient totalitarian state would be one in which the all-powerful executive of political bosses and their army of managers control a population of slaves who do not have to be coerced, because they love their servitude.”
John The Savage
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Got in GDRX at ~$45. We will see how this goes
“A really efficient totalitarian state would be one in which the all-powerful executive of political bosses and their army of managers control a population of slaves who do not have to be coerced, because they love their servitude.”
John The Savage
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“A really efficient totalitarian state would be one in which the all-powerful executive of political bosses and their army of managers control a population of slaves who do not have to be coerced, because they love their servitude.”
MaroonDynasty
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Palantir(PLTR) and Academy(ASO) both IPO this week. Direct listing by PLTR seems kinda suspect, not sure what to think there.
jh0400
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AG
It just means they aren't raising any new cash. Nothing really suspect about that. I wouldn't be shocked if they decided to issue convertible debt fairly soon.
MaroonDynasty
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Did anyone play the Academy (Ticker:ASO) IPO?
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