What happens in an IPO? – Part 1

[vivekraju93]

https://www.simplanations.in/p/ipo-1

[mellosouls]

Please add "Part 1" to the title as per the original; sometimes these series (excellent start in this case) aren't completed, and this is a long read to invest (ha!) in.

I got all the way to the end to find it was only the first in the series, that should be indicated here.

[dang → mellosouls]

Added.

Articles that bait their readers into waiting for a part 2 are generally not a good fit for HN. The idea here is to gratify curiosity, not tease it: https://news.ycombinator.com/newsguidelines.html.

[runbathtime]

Nice approach to explaining an IPO with the narrative, but I think it would be even more helpful to start in the beginning of a share's life when the company is first incorporated, when shares are created from nothing and assigned based on ownership. Talk about Form D filings with the SEC when shares are sold to private investors. Why stocks/equities are even labeled as securities. What are securities and why are they regulated. How private shares are valued/traded. Really the difference between a private company and a public one with respect to shares/valuation/regulation.

[renewiltord]

Love it. Poor Anil. And “JP Murugan” haha.

Warning, though. The article ends before IPO day. Looks like there’s a part 2. Wish there were a simple way to subscribe to that part.

[robofanatic → renewiltord]

You can subscribe here https://www.simplanations.in/subscribe

[renewiltord → robofanatic]

Ah thank you, doesn’t that sign me up for everything instead of just this series?

[robofanatic → renewiltord]

That sounds cool but I haven't come across a single website that can let you do that. Too much work for very less benefit for the publisher :-)

[JackPoach]

Thanks for taking time to write this article. I think far too little people remember downturns and don't realize that there are multiple instances when pre-IPO valuations are actually higher than post-IPO. Down rounds aren't uncommon. Also, it's fairly common to see stock prices go down immediately after IPO for the first few months.

[scoot → JackPoach]

> it's fairly common to see stock prices go down immediately after IPO for the first few months.

FaceBook being a classic example. More than halved in value in the first 3 months, now 8.5 X IPO price after 8 years.

[daniellarusso → scoot]

How badly does that affect folks holding options past the end of the year?

[zzzpaz]

Bank make money Insiders make money Who buy the shares at IPO price most likely make money

All the rest take the risk

[nomadiccoder]

I really like this style of article. It explains things in a shallow way with an enjoyable narrative. Thats also why books like the Pheonix project are so popular. If I want to know more about the divisions of the large banks I know what the context is and what terms to DDG. Great way to start start the day by learning something new. Cheers Vivek, looking forward to part 2.

[burnt_toast → nomadiccoder]

Books like that are my favorite. Built to Sell by John Warrillow is a perfect example, and one that I really enjoyed. It teaches the reader how not to run a business via a fictitious story and really opened my eyes to all the things I was doing wrong in my business.

[seem_2211 → burnt_toast]

The E Myth is another good example of a business book with a relatively simple message wrapped in an enjoyable narrative.

[varsh8th]

Loved the narrative style, hope part 2 doesn't take as long as avatar sequels :)

[salihveseli]

Hell of a story teller, I enjoyed it.

[briamn]

Props to the author! Very well-written to include a lot of information in an engaging narrative style. I look forward to part 2.