https://web.archive.org/web/20000520102020/
http://www.virtualis.com/vr/chackett

IPO Process

The Initial Public Offering IPO Process is where a previously unlisted company sells new or existing securities and offers them to the public for the first time.

Prior to an IPO, a company is considered to be private – with a smaller number of shareholders, limited to accredited investors (like angel investors/venture capitalists and high net worth individuals) and/or early investors (for instance, the founder, family, and friends).

After an IPO, the issuing company becomes a publicly listed company on a recognized stock exchange. Thus, an IPO is also commonly known as “going public”.

Overview of the IPO Process
This guide will break down the steps involved in the process, which can take anywhere from six months to over a year to complete.

Below are the steps a company must undertake to go public via an IPO process:

Select a bank
Due diligence and filings
Pricing
Stabilization
Transition

Step 1: Select an investment bank
The first step in the IPO process is for the issuing company to choose an investment bank to advise the company on its IPO and to provide underwriting services. The investment bank is selected according to the following criteria:

Reputation
The quality of research
Industry expertise
Distribution, i.e., if the investment bank can provide the issued securities to more institutional investors or to more individual investors
Prior relationship with the investment bank

Step 2: Due diligence and regulatory filings
Underwriting is the process through which an investment bank (the underwriter) acts as a broker between the issuing company and the investing public to help the issuing company sell its initial set of shares. The following underwriting arrangements are available to the issuing company:

Firm Commitment: Under such an agreement, the underwriter purchases the whole offer and resells the shares to the investing public. The firm commitment underwriting arrangement guarantees the issuing company that a particular sum of money will be raised.
Best Efforts Agreement: Under such an agreement, the underwriter does not guarantee the amount that they will raise for the issuing company. It only sells the securities on behalf of the company.
All or None Agreement: Unless all of the offered shares can be sold, the offering is canceled.
Syndicate of Underwriters: Public offerings can be managed by one underwriter (sole managed) or by multiple managers. When there are multiple managers, one investment bank is selected as the lead or book-running manager. Under such an agreement, the lead investment bank forms a syndicate of underwriters by forming strategic alliances with other banks, each of which then sells a part of the IPO. Such an agreement arises when the lead investment bank wants to diversify the risk of an IPO among multiple banks.

An underwriter must draft the following documents:

Engagement Letter: A letter of engagement typically includes:

Reimbursement clause: This clause mandates that the issuing company must cover all out-of-the-pocket expenses incurred by the underwriter, even if the IPO is withdrawn during the due diligence stage, the registration stage, or the marketing stage.
Gross spread/underwriting discount: Gross spread is arrived at by subtracting the price at which the underwriter purchases the issue from the price at which they sell the issue.
Gross spread = Sale price of the issue sold by the underwriter – Purchase price of the issue bought by the underwriter

Typically, the gross spread is fixed at 7% of the proceeds. The gross spread is used to pay a fee to the underwriter. If there is a syndicate of underwriters, the lead underwriter is paid 20% of the gross spread. 60% of the remaining spread, called “selling concession”, is split between the syndicate underwriters in proportion to the number of issues sold by the underwriter. The remaining 20% of the gross spread is used for covering underwriting expenses (for instance, roadshow expenses, underwriting counsel, etc.).

Letter of Intent: A letter of intent typically contains the following information:

The underwriter’s commitment to enter an underwriting agreement with the issuing company
A commitment by the issuing company to provide the underwriter with all relevant information and, thus, fully co-operate in all due diligence efforts.
An agreement by the issuing company to provide the underwriter with a 15% overallotment option.
The letter of intent does not mention the final offering price.

Underwriting Agreement: The letter of intent remains in effect until the pricing of the securities, after which the Underwriting Agreement is executed. Thereafter, the underwriter is contractually bound to purchase the issue from the company at a specific price.

Registration Statement: The registration statement consists of information regarding the IPO, the financial statements of the company, the background of the management, insider holdings, any legal problems faced by the company, and the ticker symbol to be used by the issuing company once listed on the stock exchange. The SEC requires that the issuing company and its underwriters file a registration statement after the details of the issue have been agreed upon. The registration statement has two parts:

The Prospectus: This is provided to every investor who buys the issued security
Private Filings: this is comprised of information which is provided to the SEC for inspection but is not necessarily made available to the public
The registration statement ensures that investors have adequate and reliable information about the securities. The SEC then carries out due diligence to ensure that all the required details have been disclosed correctly.

Red Herring Document: In the cooling-off period, the underwriter creates an initial prospectus which consists of the details of the issuing company, save the effective date and offer price. Once the red herring document has been created, the issuing company and the underwriters market the shares to public investors. Often, underwriters go on roadshows (called the dog and pony shows – lasting for 3 to 4 weeks) to market the shares to institutional investors and evaluate the demand for the shares.

Step 3: Pricing
After the IPO is approved by the SEC, the effective date is decided. On the day before the effective date, the issuing company and the underwriter decide the offer price (i.e., the price at which the shares will be sold by the issuing company) and the precise number of shares to be sold. Deciding the offer price is important because it is the price at which the issuing company raises capital for itself. The following factors affect the offering price:

The success/failure of the roadshows (as recorded in the order books)
The company’s goal
Condition of the market economy
IPOs are often underpriced to ensure that the issue is fully subscribed/ oversubscribed by the public investors, even if it results in the issuing company not receiving the full value of its shares.

If an IPO is underpriced, the investors of the IPO expect a rise in the price of the shares on the offer day. It increases the demand for the issue. Furthermore, underpricing compensates investors for the risk that they take by investing in the IPO. An offer that is oversubscribed two to three times is considered to be a “good IPO.”

Step 4: Stabilization
After the issue has been brought to the market, the underwriter has to provide analyst recommendations, after-market stabilization, and create a market for the stock issued.

The underwriter carries out after-market stabilization in the event of order imbalances by purchasing shares at the offering price or below it.

Stabilization activities can only be carried out for a short period of time – however, during this period of time, the underwriter has the freedom to trade and influence the price of the issue as prohibitions against price manipulation are suspended.

Step 5: Transition to Market Competition
The final stage of the IPO process, the transition to market competition, starts 25 days after the initial public offering, once the “quiet period” mandated by the SEC ends.

During this period, investors transition from relying on the mandated disclosures and prospectus to relying on the market forces for information regarding their shares. After the 25-day period lapses, underwriters can provide estimates regarding the earning and valuation of the issuing company. Thus, the underwriter assumes the roles of advisor and evaluator once the issue has been made.

Metrics for judging a successful IPO process
The following metrics are used for judging the performance of an IPO:

Market Capitalization: The IPO is considered to be successful if the company’s market capitalization is equal to or greater than the market capitalization of industry competitors within 30 days of the initial public offering. Otherwise, the performance of the IPO is in question.

Market Capitalization = Stock Price x Total Number of Company’s Outstanding Shares
Market Pricing: The IPO is considered to be successful if the difference between the offering price and the market capitalization of the issuing company 30 days after the IPO is less than 20%. Otherwise, the performance of the IPO is in question.
The IPO Process is essential for a healthy financial market. CFI is the official global provider of the Financial Modeling and Valuation Analyst (FMVA)™ designation, a leading financial analyst certification program.

Here’s what went down with Gamestop. You’ll love it.

A hedge fund called Melvin Capital ssid to short-sell GameStop stock. short-selling is gambling that a stock’s price will drop. If it does, you make money. If it doesn’t, you end up paying out money for however much it goes up.

Well, this ANGERED Wall Street Bets. WSB is a Group of poor people who treat the stock market like a casino. Thesy will regularly gamble their life-savings on a single trade. It’s a glorious thing to watch.

The WSB crew has a weird fascination with certain stocks. They call them “meme stocks.” Tesla is one, AMD is another, and GameStop, etc. So Melvin trying to short-sell their meme was a declaration of war.

Yes, this is dumb. But hilarious.

WSB decided to do a “short squeeze.” This is when you see people trying to short a stock, so you buy up that stock, and you get a bunch of other people to buy up that stock. With each purchase the price actually goes up. Since Melvin was trying to short the stock at a price of $20 per share, WSB wanted to get it up .

They got it up to $200 per share.

This means Melvin has to cover over $180 per share they bought. This came out to billions. BILLIONS.

Melvin Capital, over night, was suddenly facing bankruptcy. Think about that. A GANG on a website were able to tank a hedge fund. That’s hilarious.

Well, the rich and powerful don’t like seeing POOR People messing with one of their own. So Point72, another hedge fund, teamed up with others, and they injected THREE BILLION into Melvin Capital to keep them Afloat . This meant the billionaire hedge fund crew were banding together to fight back against Wall Street Bets. And WSB just said “okay, no problem.”

Today the stock for GameStop is at $320 per share.

Melvin Capital lost all of that three billion they were given. It’s gone. They’re still WRECKED. Point72 gave a little over a billion of that injection, and that means that fund dropped from 17 billion to 16 billion. That means in less than 24 hours WSB managed to Break one hedge fund and drop the value of another by 6% so far.

And remember, WSB are just a Bunch of poor people on the internet. They aren’t hedge fund guys, they aren’t millionaires or billionaires. This is literally being done A group of poor people with a phone app coordinating to ruin billionaires’ lives because they can.

What we’re watching here with GameStop stocks is a bunch of rich people who are getting wrecked, purely for entertainment, by the kind of poor people they treat like crap. This is “eat the rich” via phone app.

It’s beautiful.

And , the icing on the cake is that the app the WSB crew are using to pull this off is a stock- trading app called Robin Hood. Yeah, as in steal from the rich and all that jazz.

2021 going to be lit🔥

Here’s what went down with Gamestop. You’ll love it.
.
Allow me to catch you up.

So this hedge fund called Melvin Capital wrote out some douchey article about how the smart investment move would be to short-sell GameStop stock. To put it simply, short-selling is essentially gambling that a stock’s price will drop. If it does, you make money. If it doesn’t, you end up paying out money for however much it goes up.

Well, this little article that Melvin wrote pissed off a dark, dank corner of the internet called Wall Street Bets. WSB is a hive of Ritalin-addled lunatics who treat the stock market like a f&$^÷&g casino. These dudes will regularly gamble their life-savings on a single trade. It’s a glorious thing to watch.

The WSB crew has a weird fascination with certain stocks. They call them “meme stocks.” Tesla is one, AMD is another, and GameStop, arguably, is the most weirdly beloved meme stock. So for reasons that make sense only to the degenerates on WSB, Melvin trying to short-sell their meme was a declaration of war.

Yes, this is dumb. But it gets so f$*$<÷;# hilarious.

WSB decided to do a “short squeeze.” This is when you see people trying to short a stock, so you buy up that stock, and you get a bunch of other people to buy up that stock. With each purchase the price actually goes up. Since Melvin was trying to short the stock at a price of $20 per share, WSB wanted to get it as high above that price as humanly possible.

They got it up to $200 per share.

This means Melvin has to cover over $180 per share they bought. This came out to billions. F*$;÷[÷;#. Billions.

Melvin Capital, over night, was suddenly facing bankruptcy. Think about that. A bunch of self-identified degenerates on a f%#*$/g website were able to tank a f%#&=ng hedge fund. That’s hilarious.

Well, the rich and powerful don’t like seeing us plebeians f&%#<ng with one of their own. So Point72, another hedge fund, teamed up with a few other little funds, and they injected around THREE BILLION into Melvin Capital to keep them from spiraling. Essentially this meant the billionaire hedge fund crew were banding together to fight back against Wall Street Bets. And WSB just said “okay, no problem.”

Today the stock for GameStop is at $320 per share.

Melvin Capital lost all of that three billion they were given. It’s gone. They’re still f%#*=d. Point72 gave a little over a billion of that injection, and that means that fund dropped from 17 billion to 16 billion. That means in less than 24 hours WSB managed to all but ensure one hedge fund will die and drop the value of another by 6% so far.

And remember, WSB are just a bunch of jackasses on the internet. They aren’t hedge fund guys, they aren’t millionaires or billionaires. This is literally being done by morons with a phone app coordinating to ruin billionaires’ lives because they can.

What we’re watching here with GameStop stocks is a bunch of rich people who are getting f$&$^÷ng wrecked, purely for entertainment, by the kind of middle-class and poor people they regularly lobby against and treat like this. This “eat the rich” via phone app. It’s “damn the man” with a meme-stock.

It’s f%*$<$g beautiful.

And because whoever is writing our reality lost all sense of subtlety after 2020, the icing on the cake is that the app the WSB crew are using to pull this off is a stock-trading app called Robin Hood. Yeah, as in steal from the rich and all that jazz.

2021 going to be lit🔥

–

Anthony Wong showed an ICQ chat on his phone last week. JOYU WANG/THE WALL STREET JOURNAL

Dropping WhatsApp? Nostalgia Drives Users to ICQ
Before social media was about algorithms and viral misinformation, kids in Hong Kong loved a clunky instant-messaging service used on dial-up PCs. Now they’re grown up, and back.
By Newley Purnell and Joyu Wang
Jan. 24, 2021 10:35 am ET
HONG KONG—WhatsApp users around the world who are worried about the company’s shifting policy on data privacy are flocking to rival messaging apps such as Signal and Telegram.

In Hong Kong, some are choosing an alternative that reminds them of their childhood—before algorithms, Big Tech and viral misinformation.

ICQ was a pioneering, mid-1990s…

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Timeline of Genesis patriarchs

The timeline of the Tanakh can be estimated using the ages given in Genesis. These timelines are used by some biblical scholars to estimate the age of the earth by counting back the number of years associated with each of the biblical patriarchs and adding the years together. Dates are based on the Masoretic tradition. Years are given in Anno Mundi (AM).

1 AM Edit
The LORD creates Adam and Eve.[1]
130 AM Edit
Adam at age 130 begets Seth.[2]
235 AM Edit
Seth at age 105 begets Enosh.[3]
325 AM Edit
Enosh at age 90 begets Kenan.[4]
395 AM Edit
Kenan at age 70 begets Mahalaleel.[5]
460 AM Edit
Mahalalel at age 65 begets Jared.[6]
622 AM Edit
Jared at age 162 begets Enoch.[7]
687 AM Edit
Enoch at age 65 begets Methuselah.[8]
874 AM Edit
Methuselah at age 187 begets Lamech.[9]
930 AM Edit
Adam dies at age 930.[10]
987 AM Edit
Enoch is taken up by the LORD at age 365.[11]
1042 AM Edit
Seth dies at age 912.[12]
1056 AM Edit
Lamech at age 182 begets Noah.[13]
1140 AM Edit
Enosh dies at age 905.[14]
1235 AM Edit
Kenan dies at age 910.[15]
1290 AM Edit
Mahalaleel dies at age 895.[16]
1422 AM Edit
Jared dies at age 962.[17]
1556 AM Edit
Noah at age 500 begets Shem, Ham, and Japheth.[18] The LORD tells Noah to build an ark to prepare for the Flood that will start in 100 years time.[19]
1651 AM Edit
Lamech dies at age 777.[20]
1656 AM Edit
Methuselah dies at age 969.[21]
Noah is 600.[22]
On the second month, tenth day, the LORD tells Noah to migrate in pairs into the ark[23] that had been commissioned 100 years earlier and prepare for the Flood that would start in 7 days time.[24]
On the second month, seventeenth day, the Flood begins[25] and lasts 150 days.[26]
On the seventh month, seventeenth day, the waters begin to recede[27] causing the ark to rest on Mt. Ararat.[28]
On the tenth month, first day, the tops of the mountains can be seen.[29]
1657 AM Edit
Noah is 601.[30]
1658 AM Edit
Arpachshad is born.
1693 AM Edit
Shelah is born.
1723 AM Edit
Eber is born.
1757 AM Edit
Peleg is born.
1787 AM Edit
Reu is born.
1819 AM Edit
Serug is born.
1849 AM Edit
Nahor is born.
1878 AM Edit
Terah is born.
1948 AM Edit
Abraham is born
1958 AM Edit
Sarah, Abraham’s wife, is born.
1996 AM Edit
Peleg dies at age 239.
1997 AM Edit
Nahor dies at age 148.
2006 AM Edit
Noah dies at age 950.
2026 AM Edit
Reu dies at age 239
2034 AM Edit
Ishmael is born.
2048 AM Edit
Isaac is born.
2049 AM Edit
Serug dies at age 230.
2083 AM Edit
Terah dies at age 205.
2085 AM Edit
Sarah dies at age 127.
2088 AM Edit
Isaac is married at the age of 40 to Rebecca.
2096 AM Edit
Arpachshad dies at age 438.
2108 AM Edit
Jacob and Esau, who are twins, are born.
2123 AM Edit
Abraham dies at age 175.
2126 AM Edit
Shelah dies at age 433.
2158 AM Edit
Shem dies at age 600.
2171 AM Edit
Ishmael dies at age 137.
2187 AM Edit
Eber dies at age 464
2228 AM Edit
Isaac dies at age 180.
2238 AM Edit
Jacob moves to Egypt at age 130.
2255 AM Edit
Jacob dies in Egypt at age 147.
..

Jeff Bezos Is Backing an Ancient Kind of Nuclear Fusion
This tech could be more practical than tokamaks.

Smaller fusion reactors could have their breakthrough moment far sooner than large projects.
The Jeff Bezos-backed General Fusion and Commonwealth Fusion Systems both are targeting 2025.
These reactors use extraordinary magnets to pressurize elements into superhot plasma.
Two competing nuclear fusion companies, each with venture capital superstars as major investors, say we’re approaching the “Kitty Hawk moment” for their technology as early as 2025.

Magnetized target fusion (MTF) dates back to the 1970s, when the U.S. Naval Research Lab first proposed it. But MTF’s proponents say the technology is now bearing down to reach the commercial power market.

What is this tech, and will it be viable before the competing fusion model of tokamaks, like the International Thermonuclear Experimental Reactor (ITER)?

Like a tokamak, an MTF reactor involves hot plasma contained by a powerful magnetic field. But where a tokamak is heated by extraordinary outside power, the MTF reactor made by Canada’s Jeff Bezos-backed General Fusion is pressurized to superheat the plasma—like a party filled with dancing people where the room continues to shrink around them. This pressure is applied by pistons that coordinate to make a pressure wave.

From there, the rest is a more prosaic business. Hot neutrons escape the plasma and are captured in the liquid metal, and their energy powers a heat exchanger to make power. And with a main chamber of “just” 10 feet in diameter, General Fusion’s MTF reactor is considered small for a fusion technology intended to self sustain and generate power after reaching plasma ignition.

General Fusion’s reactor for magnetized target fusion. The pistons are used to pump liquid metal to compress the plasma.

Meanwhile, the American company Commonwealth Fusion Systems operates with a 10-ton magnet at the heart of its fusion reactor. The superconducting magnet will trap and pressurize hydrogen to induce a powerful plasma reactor. Last year, TechCrunch said Commonwealth’s technology is a hypothetical “leapfrog” of the entire current generation of plasma tokamak reactors.

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