What happens in an IPO? – Part 1 (opens in new tab)

(simplanations.in)

232 pointsvivekraju935y ago17 comments

17 comments

16 comments · 9 top-level

renewiltord5y ago· 2 in thread

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.

robofanatic5y ago

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

renewiltord5y ago

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

1 more reply

JackPoach5y ago· 2 in thread

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.

scoot5y ago

> 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.

daniellarusso5y ago

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

nomadiccoder5y ago· 2 in thread

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_toast5y ago

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_22115y ago

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

mellosouls5y ago· 1 in thread

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.

dang5y ago

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.

runbathtime5y ago

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.

zzzpaz5y ago

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

All the rest take the risk

varsh8th5y ago

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

salihveseli5y ago

Hell of a story teller, I enjoyed it.

briamn5y ago

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

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