IPO Question

[UGA12]

There is a local(10 minutes from me) company that is in the process of going public that I would like to get in on at the ground level. They have filed plans to offer up to $100 million of shares in an initial public offering. They apparently filed in mid- july. My questions are 1) How long does it usually take between filing and offering of stock to take place and 2) How is the price of the original stock determined? They want to raise 100 million, so do they simply find a price that they feel comfortable that the stock will sell at and divide 100 million by that number to determine the shares they release? Sorry but pretty ignorant to this side of things and would like some info cause I will be buying into this. Thanks
Here is the company

http://www.marketwatch.com/story/greenway-medical-plans-up-to-100-million-ipo-2011-07-16

 

[DOGS THAT BARK]

Their company website may provide most up to date info--not sure. I have never bought an IPO.
I'm thiking with market the way it is--they may delay offereing.


http://www.greenwaymedical.com/news/article/?id=352

Sorry I'm not much help-

 

[selkirk]

UGA find out the brokerages who will be involved in the IPO, then contact them. there is ussually a couple of brokerages involved, and a lead brokerage.

as for the price, an ipo should be set at a price (that can get the most amount for the company) while giving investors a chance at a gain.

ie. a poor IPO Athabasca oil sands, traded at the IPO and shortly after was down 20-30%.

if you want this as a long term investment, sometimes getting in on the IPO does not matter (watch pops 20%...lol), you can buy it wants it start trading.

if you want to know the likely hood of a pop on the IPO chances are if you can buy as much as you want that may not be a good sign.....

Tim Hortons was a hot IPO and had a waiting list, popped and then trading back to the IPO price before going higher...

DTB is correct most IPO come out in up markets, hard to sell new stocks when no one wants the current ones.

thanks
selkirk

 

[selkirk]

the company will tell you, or there is a news release, also you will need an account at the particpating brokerages.


J.P. Morgan and Morgan Stanley

some might also be available through your brokerage account (broker) does not hurt to check.


thanks
selkirk

 

[UGA12]

So if I am understanding you correctly. they will set the price for their IPO and seel all stocks accordingly. Then when they have all sold for their set price it will become publicly traded stock. What you are saying is that the price they set for their IPO may actually be more expensive then what it will eventually settle and trade for. I have zero experience with with companies just going public so thanks for the information. What I dont understand is why anyone would ever take less for their stock than they paid for the IPO. If they do not take less though, how does the price ever go down. It would seem it would have to go up originally in order totrade hands and then I could see it losing value, just seems the original IPO would either make you some money(at least if you get out early) or no one would by it and there would simply be no trading of the stock. Sorry if none of that made any sense, but like I said I am trying to figure this process out.