Ipo Quotes

To me, Elon is the shining example of how Silicon Valley might be able to reinvent itself and be more relevant than chasing these quick IPOs and focusing on getting incremental products out,

Happy you’re living your life, ipo. But I’m fuckin’ thrilled you’re choosing to live it with me. I love you.

In October 2014, Alibaba Group Holding Ltd. went public on the New York Stock Exchange (NYSE) and raised $25 billion, marking it as the largest IPO in history. Alibaba is also one of the largest e-commerce platforms in the world.

closed at $1.19 per share. Weighing the evidence objectively, the intelligent investor should conclude that IPO does not stand only for “initial public offering.” More accurately, it is also shorthand for: It’s Probably Overpriced, Imaginary Profits Only, Insiders’ Private Opportunity, or Idiotic, Preposterous, and Outrageous.

You cannot earn $10 million. Nobody earns millions. You can rob, you can steal, or you can make $10 million in an IPO, but never earn so much. So just forget all this saving and consulting bullshit.

You will never be allowed to buy the really good IPOs at the initial offering price. The hot IPOs are snapped up by the big institutional investors or the very best wealthy clients of the underwriting firm.

When you're running a public company, you're held accountable to a multitude of stakeholders all of whom require explanation for your performance.

To me, Elon is the shining example of how Silicon Valley might be able to reinvent itself and be more relevant than chasing these quick IPOs and focusing on getting incremental products out,” said Edward Jung, a famed software engineer and inventor. “Those things are important, but they are not enough. We need to look at different models of how to do things that are longer term in nature and where the technology is more integrated.

We talked about our IPO like it was dues ex machina coming down from high to save us

the FBI has been investigating the firm for over a year. Shortly after their stock went public, they got a tip that the market listing was fraudulently overstated in connection with the IPO.

Kuamini (mbali na imani, ambayo ni nia ya kujua kisichoweza kujulikana) ni kwa ajili ya vitu usivyoweza kuvielezea. Unaamini kwamba siku moja dawa ya UKIMWI au saratani itapatikana mahali fulani, ilhali huwezi kufanya majaribio ya kisayansi kulithibitisha hilo. Unaweza kusubiri hata miaka mia, lakini kama bado dawa haijapatikana, unaweza kusubiri hata miaka mingine mia. Kuamini ni kujifanya kujua (na mara nyingi kujifanya kujua ni uongo) na kuamini hakuhitaji maarifa. Kujua kunahitaji maarifa na ni kuamini unakoweza kukuthibitisha. Ukiniuliza kama simu yangu ipo mfukoni nitakwambia ndiyo ipo, kwa sababu nitaingiza mkono mfukoni na kuitoa na kuiona. Siamini kama ipo mfukoni, najua.

investors who pay attention to the economy can be more successful because they can take advantage of impending changes. While everyone else is focused on what’s happening right now, economically savvy investors can focus on what’s coming

It’s crazy to think that tragedy gets more attention than good news. I mean, not one of my friends texted about the IPO. But I guess that’s true of people in general. They only see what they want to see, even when the truth is right in front of them.

A rupee invested in Page Industries’ IPO in March 2007 is worth Rs 34 presently (in April 2016), implying a compounded annual return of 47 per cent. That same rupee would be worth just Rs 2 if invested in the Sensex, implying a CAGR of 8 per cent. Thus

And though Russia does officially have a free market, with mega-corporations floating their record-breaking IPOs on the global stock exchanges, most of the owners are friends of the President. Or else they are oligarchs who officially pledge that everything that belongs to them is also the President’s when he needs it: “All that I have belongs to the state,” says Oleg Deripaska, one of the country’s richest men. This isn’t a country in transition but some sort of postmodern dictatorship that uses the language and institutions of democratic capitalism for authoritarian ends.

There is no question that the losing IPOs far outnumber the winners. Of the 8,606 firms examined, the returns on 6,796 of these firms, or 79 percent, have subsequently underperformed the returns on a representative small stock index, and almost half the firms have underper-formed by more than 10 percent per year.

Many new investors, eager to see quick profits, need to develop the patience and research skills necessary for successful long-term investing.

Learning is earning.

Diversification, the easy accessibility of funds, and having a skilled professional money manager working to make your investment grow are the three most prominent reasons that mutual funds have become so popular.

the utilities and services sectors tend to perform well during an economic downturn; and as that downturn segues into a full recession, the technology, cyclicals, and industrial sectors will start to flourish. As the economy begins

John Battelle: With the benefit of hindsight, Google’s IPO in 2004 was as important as the Netscape IPO in 1995. Everyone got excited about the internet in the late nineties, but the truth was a very small percentage of the world used it. Google went public after the dot-com crash and reestablished the web as a medium. Web 1.0 was a low-bandwidth, underdeveloped toy. Web 2.0 is a robust broadband medium with three billion people using it for everything from conducting business to communicating with your friends and family.

Here is the paradox that libertarians just don’t get: the Internet was conceived and paid for by the US government. It was not a product of the free market as we think of it today—the realization of some young entrepreneur’s dreams. It was painstakingly researched and executed by a bunch of academics for whom IPO billions weren’t a reason to work. Rather, these people were fundamentally convinced that they could make the world a better place with their inventions. Every piece of code—HTML, TCP/IP—was donated to the ARPANET project royalty-free.

WHAT DOES IT ALL MEAN? The lessons of market history are clear. Styles and fashions in investors’ evaluations of securities can and often do play a critical role in the pricing of securities. The stock market at times conforms well to the castle-in-the-air theory. For this reason, the game of investing can be extremely dangerous. Another lesson that cries out for attention is that investors should be very wary of purchasing today’s hot “new issue.” Most initial public offerings underperform the stock market as a whole. And if you buy the new issue after it begins trading, usually at a higher price, you are even more certain to lose. Investors would be well advised to treat new issues with a healthy dose of skepticism. Certainly investors in the past have built many castles in the air with IPOs. Remember that the major sellers of the stock of IPOs are the managers of the companies themselves. They try to time their sales to coincide with a peak in the prosperity of their companies or with the height of investor enthusiasm for some current fad. In such cases, the urge to get on the bandwagon—even in high-growth industries—produced a profitless prosperity for investors.

But was the Newton a failure? The timing of Newton’s entry into the handheld market was akin to the timing of the Apple II into the desktop market. It was a market-creating, disruptive product targeted at an undefinable set of users whose needs were unknown to either themselves or Apple. On that basis, Newton’s sales should have been a pleasant surprise to Apple’s executives: It outsold the Apple II in its first two years by a factor of more than three to one. But while selling 43,000 units was viewed as an IPO-qualifying triumph in the smaller Apple of 1979, selling 140,000 Newtons was viewed as a failure in the giant Apple of 1994.

Amazon made its first 10x improvement in a particularly visible way: they offered at least 10 times as many books as any other bookstore. When it launched in 1995, Amazon could claim to be “Earth’s largest bookstore” because, unlike a retail bookstore that might stock 100,000 books, Amazon didn’t need to physically store any inventory—it simply requested the title from its supplier whenever a customer made an order. This quantum improvement was so effective that a very unhappy Barnes & Noble filed a lawsuit three days before Amazon’s IPO, claiming that Amazon was unfairly calling itself a “bookstore” when really it was a “book broker.

There are 2 billion people who have no bank accounts at all. There are another 4 billion people who have very limited access to banking. ​ Banking without international currencies, banking without international markets, banking without liquidity. Bitcoin isn’t about the 1 billion. Bitcoin is all about the other 6 1/2. The people who are currently cut off from international banking. What do you think happens when you suddenly are able to turn a simple text-messaging phone in the middle of a rural area in Nigeria, connected to a solar panel, into a bank terminal? Into a Western Union remittance terminal? ​Into an international loan-origination system? A stock market? An IPO engine? At first, nothing, but give it a few years.

People who think they need high-pressure methods or tools—pinch collars or electric appliances—to train a dog have no clue how to train a dog well. Training, both as a hobby and as a profession, should be pleasant for the dog and the handler. It should be a successful learning process that yields progress for both parties. If training becomes a torment for the handler or the dog, then both parties are on the wrong track.

The public offering occurred exactly one week after Toy Story’s opening. Jobs had gambled that the movie would be successful, and the risky bet paid off, big-time. As with the Apple IPO, a celebration was planned at the San Francisco office of the lead underwriter at 7 a.m., when the shares were to go on sale. The plan had originally been for the first shares to be offered at about $14, to be sure they would sell. Jobs insisted on pricing them at $22, which would give the company more money if the offering was a success. It was, beyond even his wildest hopes. It exceeded Netscape as the biggest IPO of the year. In the first half hour, the stock shot up to $45, and trading had to be delayed because there were too many buy orders. It then went up even further, to $49, before settling back to close the day at $39. Earlier that year Jobs had been hoping to find a buyer for Pixar that would let him merely recoup the $50 million he had put in. By the end of the day the shares he had retained—80% of the company—were worth more than twenty times that, an astonishing $1.2 billion. That was about five times what he’d made when Apple went public in 1980.

Yes, that’s the one. Aaron, I want you to acquire the company tomorrow. Start low, but I want you to end up offering at least fifteen million for it. Actually, how many partners are there?” “I see two registered partners. Michael Teo and Adrian Balakrishnan.” “Okay, bid thirty million.” “Charlie, you can’t be serious? The book value on that company is only—” “No, I’m dead serious,” Charlie cut in. “Start a fake bidding war between some of our subsidiaries if you have to. Now listen carefully. After the deal is done, I want you to vest Michael Teo, the founding partner, with class-A stock options, then I want you to bundle it with that Cupertino start-up we acquired last month and the software developer in Zhongguancun. Then, I want us to do an IPO on the Shanghai Stock Exchange next month.” “Next month?” “Yes, it has to happen very quickly. Put the word out on the street, let your contacts at Bloomberg TV know about it, hell, drop a hint to Henry Blodget if you think it will help drive up the share price. But at the end of the day I want those class-A stock options to be worth at least $250 million. Keep it off the books, and set up a shell corporation in Liechtenstein if you have to. Just make sure there are no links back to me. Never, ever.

What’s an IPO, exactly? A company decides it wants to “float” part of its equity on the public markets, allowing employees and founders to sell private shares to pay them off for years of service, as well as sell shares out of the corporate treasury to have some money in the bank. Large investment banks (such as my former employer Goldman Sachs) form what’s called a “syndicate” (“mafia” might be a better term) wherein they offer to effectively buy those shares from Facebook, and then sell them into the capital markets, usually by pushing it via their sales force onto wealthy clients or institutional investors. That syndicate either guarantees a price (“firm commitment”) or promises to get the best price it can (“best effort”). In the former case, the bank is taking real execution risk, and stands to lose money if it doesn’t engineer a “pop” in the stock on opening day. To mitigate the risk, the bank convinces the offering company to expect a lower price, while simultaneously jacking up what real price the market will bear with a zealous sales pitch to the market’s deepest pockets. Thus, it is absolutely jejune to think that a stock’s rise on opening day is due to clamoring and unexpected interest. Similar to Captain Renault in Casablanca, Wall Street bankers are shocked—shocked!—that there should be such a large and positive price dislocation in the market they just rigged.

Biblia pamoja na historia vinatwambia kuwa mitume kumi na wawili wa Yesu Kristo waliamua kufa kinyama kama mfalme wao alivyokufa, kwa sababu walikataa kukana imani yao juu ya Yesu Kristo. Mathayo alikufa kwa ajili ya Ukristo nchini Ethiopia kwa jeraha lililotokana na kisu kikali, Marko akavutwa na farasi katika mitaa ya Alexandria nchini Misri mpaka akafa, kwa sababu alikataa kukana jina la Yesu Kristo. Luka alinyongwa nchini Ugiriki kwa sababu ya kuhubiri Injili ya Yesu Kristo katika nchi ambapo watu hawakumtambua Yesu. Yohana alichemshwa katika pipa la mafuta ya moto katika kipindi cha mateso makubwa ya Wakristo nchini Roma, lakini kimiujiza akaponea chupuchupu, kabla ya kufungwa katika gereza la kisiwa cha Patmo (Ugiriki) ambapo ndipo alipoandika kitabu cha Ufunuo. Mtume Yohana baadaye aliachiwa huru na kurudi Uturuki, ambapo alimtumikia Bwana kama Askofu wa Edessa. Alikufa kwa uzee, akiwa mtume pekee aliyekufa kwa amani. Petro alisulubiwa kichwa chini miguu juu katika msalaba wa umbo la X kulingana na desturi za kikanisa za kipindi hicho, kwa sababu aliwaambia maadui zake ya kuwa alijisikia vibaya kufa kama alivyokufa mfalme wake Yesu Kristo. Yakobo ndugu yake na Yesu (Yakobo Mkubwa), kiongozi wa kanisa mjini Yerusalemu, alirushwa kutoka juu ya mnara wa kusini-mashariki wa hekalu aliloliongoza la Hekalu Takatifu (zaidi ya futi mia moja kwenda chini) na baadaye kupigwa kwa virungu mpaka akafa, alipokataa kukana imani yake juu ya Yesu Kristo. Yakobo mwana wa Zebedayo (Yakobo Mdogo) alikuwa mvuvi kabla Yesu Kristo hajamwita kuwa mchungaji wa Injili yake. Kama kiongozi wa kanisa hatimaye, Yakobo aliuwawa kwa kukatwa kichwa mjini Yerusalemu. Afisa wa Kirumi aliyemlinda Yakobo alishangaa sana jinsi Yakobo alivyolinda imani yake siku kesi yake iliposomwa. Baadaye afisa huyo alimsogelea Yakobo katika eneo la mauti. Nafsi yake ilipomsuta, alijitoa hatiani mbele ya hakimu kwa kumkubali Yesu Kristo kama kiongozi wa maisha yake; halafu akapiga magoti pembeni kwa Yakobo, ili na yeye akatwe kichwa kama mfuasi wa Yesu Kristo. Bartholomayo, ambaye pia alijulikana kama Nathanali, alikuwa mmisionari huko Asia. Alimshuhudia Yesu mfalme wa wafalme katika Uturuki ya leo. Bartholomayo aliteswa kwa sababu ya mahubiri yake huko Armenia, ambako inasemekana aliuwawa kwa kuchapwa bakora mbele ya halaiki ya watu iliyomdhihaki. Andrea alisulubiwa katika msalaba wa X huko Patras nchini Ugiriki. Baada ya kuchapwa bakora kinyama na walinzi saba, alifungwa mwili mzima kwenye msalaba ili ateseke zaidi. Wafuasi wake waliokuwepo katika eneo la tukio waliripoti ya kuwa, alipokuwa akipelekwa msalabani, Andrea aliusalimia msalaba huo kwa maneno yafuatayo: "Nimekuwa nikitamani sana na nimekuwa nikiitegemea sana saa hii ya furaha. Msalaba uliwekwa wakfu na Mwenyezi Mungu baada ya mwili wa Yesu Kristo kuning’inizwa juu yake." Aliendelea kuwahubiria maadui zake kwa siku mbili zaidi, akiwa msalabani, mpaka akaishiwa na nguvu na kuaga dunia. Tomaso alichomwa mkuki nchini India katika mojawapo ya safari zake za kimisionari akiwa na lengo la kuanzisha kanisa la Yesu Kristo katika bara la India. Mathiya alichaguliwa na mitume kuchukua nafasi ya Yuda Iskarioti, baada ya kifo cha Yuda katika dimbwi la damu nchini India. Taarifa kuhusiana na maisha na kifo cha Mathiya zinachanganya na hazijulikani sawasawa. Lakini ipo imani kwamba Mathiya alipigwa mawe na Wayahudi huko Yerusalemu, kisha akauwawa kwa kukatwa kichwa. Yuda Tadei, ndugu yake na Yesu, aliuwawa kwa mishale alipokataa kukana imani yake juu ya Yesu Kristo. Mitume walikuwa na imani kubwa kwa sababu walishuhudia ufufuo wa Yesu Kristo, na miujiza mingine. Biblia ni kiwanda cha imani. Tunapaswa kuiamini Biblia kama mitume walivyomwamini Yesu Kristo, kwa sababu Biblia iliandikwa na mitume.

This book has pushed back against the randomness thesis, emphasizing instead the skill in venture capital. It has done so for four reasons. First, the existence of path dependency does not actually prove that skill is absent. Venture capitalists need skill to enter the game: as the authors of the NBER paper say, path dependency can only influence which among the many skilled players gets to be the winner. Nor is it clear that path dependency explains why some skilled operators beat other ones. The finding that a partnership’s future IPO rate rises by 1.6 percentage points is not particularly strong, and the history recounted in these pages shows that path dependency is frequently disrupted.[5] Despite his powerful reputation, Arthur Rock was unsuccessful after his Apple investment. Mayfield was a leading force during the 1980s; it too faded. Kleiner Perkins proves that you can dominate the Valley for a quarter of a century and then decline precipitously. Accel succeeded early, hit a rough patch, and then built itself back. In an effort to maintain its sense of paranoia and vigilance, Sequoia once produced a slide listing numerous venture partnerships that flourished and then failed. “The Departed,” it called them. The second reason to believe in skill lies in the origin story of some partnerships. Occasionally a newcomer breaks into the venture elite in such a way that skill obviously does matter. Kleiner Perkins became a leader in the business because of Tandem and Genentech. Both companies were hatched from within the KP office and actively shaped by Tom Perkins; there was nothing lucky about this. Tiger Global and Yuri Milner invented the art of late-stage venture capital. They had a genuinely novel approach to tech investing; they offered much more than the equivalent of another catchy tune competing against others. Paul Graham’s batch-processing method at Y Combinator offered an equally original approach to seed-stage investing. A clever innovation, not random fortune, explains Graham’s place in venture history.

An American businessman took a vacation to a small coastal Mexican village on doctor’s orders. Unable to sleep after an urgent phone call from the office the first morning, he walked out to the pier to clear his head. A small boat with just one fisherman had docked, and inside the boat were several large yellowfin tuna. The American complimented the Mexican on the quality of his fish. “How long did it take you to catch them?” the American asked. “Only a little while,” the Mexican replied in surprisingly good English. “Why don’t you stay out longer and catch more fish?” the American then asked. “I have enough to support my family and give a few to friends,” the Mexican said as he unloaded them into a basket. “But… What do you do with the rest of your time?” The Mexican looked up and smiled. “I sleep late, fish a little, play with my children, take a siesta with my wife, Julia, and stroll into the village each evening, where I sip wine and play guitar with my amigos. I have a full and busy life, señor.” The American laughed and stood tall. “Sir, I’m a Harvard M.B.A. and can help you. You should spend more time fishing, and with the proceeds, buy a bigger boat. In no time, you could buy several boats with the increased haul. Eventually, you would have a fleet of fishing boats.” He continued, “Instead of selling your catch to a middleman, you would sell directly to the consumers, eventually opening your own cannery. You would control the product, processing, and distribution. You would need to leave this small coastal fishing village, of course, and move to Mexico City, then to Los Angeles, and eventually to New York City, where you could run your expanded enterprise with proper management. The Mexican fisherman asked, “But, señor, how long will all this take?” To which the American replied, “15-20 years, 25 tops.” “But what then, señor?” The American laughed and said, “That’s the best part. When the time is right, you would announce an IPO and sell your company stock to the public and become very rich. You would make millions.” “Millions señor? Then what?" “Then you would retire and move to a small coastal fishing village, where you would sleep late, fish a little, play with your kids, take a siesta with your wife, and stroll in to the village in the evenings where you could sip wine and play your guitar with your amigos.

Reid Hoffman, founder of LinkedIn, observed that an entrepreneur is someone who will jump off a cliff and assemble an airplane on the way down.

a Harvard M.B.A. and can help you. You should spend more time fishing, and with the proceeds, buy a bigger boat. In no time, you could buy several boats with the increased haul. Eventually, you would have a fleet of fishing boats.” He continued, “Instead of selling your catch to a middleman, you would sell directly to the consumers, eventually opening your own cannery. You would control the product, processing, and distribution. You would need to leave this small coastal fishing village, of course, and move to Mexico City, then to Los Angeles, and eventually New York City, where you could run your expanding enterprise with proper management.” The Mexican fisherman asked, “But, señor, how long will all this take?” To which the American replied, “15–20 years. 25 tops.” “But what then, señor?” The American laughed and said, “That’s the best part. When the time is right, you would announce an IPO and sell your company stock to the public and become very rich. You would make millions.” “Millions, señor? Then what?” “Then you would retire and move to a small coastal fishing village, where you would sleep late, fish a little, play with your kids, take a siesta with your wife, and stroll to the village in the evenings where you could sip wine and play your guitar with your amigos …

An integral part of a public offering is a “road show,” during which company leaders pitch their prospects to bankers and investment gurus. Brin and Page refused to see themselves as supplicants. According to Lise Buyer, the founders routinely spurned any advice from the experienced financial team they’d hired to guide them through the process. “If you told them you couldn’t do something a certain way, they would think you were an idiot,” she says. The tone of the road-show presentations was set early, as Brin and Page introduced themselves by first names, an opening more appropriate for bistro waiters than potential captains of industry. And of course they weren’t attired like executives—the day of their presentation of Google’s case to investors was one more in a lifetime of casual dress days for them. Google had prepared a video to promote the company, but viewers considered it amateurish. It was poorly lit and wasn’t even enlivened by the customary upbeat musical sound track. Though anyone who read the prospectus should have been prepared for that, some investors had difficulty with the heresy that Google was willing to forgo some profits for its founders’ idealistic views of what made the world a better place. On the video Brin cautioned that Google might apply its resources “to ameliorate a number of the world’s problems.” Probably the low point of the road show was a massive session involving 1,500 potential investors at the Waldorf-Astoria hotel in New York. Brin and Page caused a firestorm by refusing to answer many questions, cracking jokes instead. According to The Wall Street Journal, “Some investors sitting in the ballroom began speculating with each other whether the executives had spent any time practicing the presentation, or if they were winging it.” The latter was in fact the case—despite the desperate urging of Google’s IPO team, Page and Brin had refused to perform even a cursory run-through.

Ben: “If you need me, I will come home.” Felicia: “No. Get the IPO done. There is no tomorrow for you and the company. I’ll be fine.

Czuł się zmęczony. Mięśnie go bolały jak po długim biegu. Najchętniej pojechałby teraz do hotelu, wypił duże pieniste piwo i po prostu położył się spać.

unhappy Barnes & Noble filed a lawsuit three days before Amazon’s IPO, claiming that Amazon was unfairly calling itself a “bookstore” when really it was a “book broker.

Driving the move is a focus by Beijing on the Internet and innovation-driven sectors to boost slowing growth by easing listing rules. Another factor is a stock rally that has seen the Shanghai Composite Index climb 43% this year, although it fell 6.5% on Thursday. Meanwhile, Chinese investors are pouring money into funds that target startups. In 2014, 39 angel investment funds were set up in China, raising $1.07 billion, a 143% increase from the previous high in 2012, according to investment database pedata.cn, which is run by Zero2IPO Research in Beijing. Angel investors typically provide personal funds to finance small startups. High valuations and the loosening of listing rules will draw more Chinese companies to their home market, said Jianbin Gao of PricewaterhouseCoopers in China. “We anticipate significant growth in technology listings on domestic exchanges,” he said.

Evan Spiegel, the 24-year-old founder of Snapchat, a photo-messaging app that was valued at $15 billion after a round of fundraising in March, confirmed that his firm is preparing for an IPO, though he didn’t say when.

Apurva’s future plan is ambitious. In 5 years’ time, she plans to have her own institute in forensic accounting. And ultimately go for an IPO.

After our IPO in January 1997, we had to get better at predicting our numbers. … The market penalized us when we missed one quarter in ‘99 after we adopted a new manufacturing system. We said, “Look, we can’t predict what’s going on in the economy, and we have no idea what our orders will look like a year from now. … We don’t run this business by the numbers. The numbers will be doing what the numbers will be doing; we can just give you a good picture of what the next quarter will bring. So, we got away from making annual projections and started just doing quarterly forecasts. … We know our performance in the long run will be a result of just doing the right things every day.115

D: To reach the big pay-off, whether IPO, acquisition, retirement, or other pot of gold. NR: To think big but ensure payday comes every day: cash flow first, big payday second.

You don’t have to live in Wyoming to set up a Limited Liability Company (LLC) there — you just register your business there. You might still have to pay your state a “foreign corporation” fee to do business, but it’s typically less than full incorporation. Wyoming’s asset protection laws for single-member LLCs are very strong, and the state is solvent and unlikely to levy additional fees, which makes it a good option for a lot of small businesses, in the same way Delaware is a good option for financial companies and businesses that want to IPO. ~ Josh Kaufmann, from a Facebook post, showing you that this stuff is more involved than you think Liability protection Running a business is going to expose

Given the inefficiency of the Indian bureaucracy to effectively implement national objectives, a possible approach (as suggested by Prof. Kelkar once), to salvage the existing PSEs (including all its stakeholders) and to protect the State’s investment in them, would be to transfer all Government’s share in all PSEs to a holding company set up under the Disinvestment Act, at once. 8.4.4 Government should disinvest majority of its share (55 %) in the holding company to Indian mutual funds, and insurance companies through the book-building route, twenty per cent of its share to small investors through IPO (Initial Public Offer), five percent of its share to foreign institutional investors, ten per cent of its share through ADR/GDR in the foreign capital market (this would lead to improved corporate governance as listing in foreign markets, particularly NYSE has stringent requirements), and retain just ten per cent of share in the holding company. 8.4.5 The holding company should be managed by a reputed professional board (initially appointed by the Government through wide consultations and subsequently confirmed by the shareholders of the holding company). The Board would be responsible to its shareholders. The Board of the individual PSEs (which would no longer be a PSE as they would become subsidiaries of the holding private company) would be appointed by the holding company and be responsible to the Board of the holding company.

Yet perhaps the most surprising source of high fees for corporate advisory work is in the new issue market, since the percentages are not small and the money often comes from the pockets of founders and early shareholders. In the USA, 7 per cent is a standard fee for an IPO (initial public offering), and rarely discounted (European fees are typically lower and more variable).5 But no evidence of a cartel has been produced, and probably none exists—there is simply a strong perception of collective interest in maintaining the status quo. Regulation

Stoicy nie podpowiadają ani ile tych celów wybrać, ani też jakie one mają być. Mówią jedynie, że powinno ich być więcej niż jeden, że powinny być dobrze przemyślane, a z każdej minuty musimy się umieć przed sobą rozliczyć. Ważne jest, by zawsze wiedzieć, na co nasz czas poświęcamy, by kontrolować co, kiedy i po co robimy. To my decydujemy o treści każdej chwili.

Soon, I found myself criss-crossing the country with Steve, in what we called our “dog and pony show,” trying to drum up interest in our initial public offering. As we traveled from one investment house to another, Steve (in a costume he rarely wore: suit and tie) pushed to secure early commitments, while I added a professorial presence by donning, at Steve’s insistence, a tweed jacket with elbow patches. I was supposed to embody the image of what a “technical genius” looks like—though, frankly, I don’t know anyone in computer science who dresses that way. Steve, as pitch man, was on fire. Pixar was a movie studio the likes of which no one had ever seen, he said, built on a foundation of cutting-edge technology and original storytelling. We would go public one week after Toy Story opened, when no one would question that Pixar was for real. Steve turned out to be right. As our first movie broke records at the box office and as all our dreams seemed to be coming true, our initial public offering raised nearly $140 million for the company—the biggest IPO of 1995. And a few months later, as if on cue, Eisner called, saying that he wanted to renegotiate the deal and keep us as a partner. He accepted Steve’s offer of a 50/50 split. I was amazed; Steve had called this exactly right. His clarity and execution were stunning. For me, this moment was the culmination of such a lengthy series of pursuits, it was almost impossible to take in. I had spent twenty years inventing new technological tools, helping to found a company, and working hard to make all the facets of this company communicate and work well together. All of this had been in the service of a single goal: making a computer-animated feature film. And now, we’d not only done it; thanks to Steve, we were on steadier financial ground than we’d ever been before. For the first time since our founding, our jobs were safe. I

Do not get bogged down in right or wrong and quantitative evaluation. Look at what pertains to today. How do you define who is the robber, who is the businessman and who is the tycoon? Consider these examples. In the first case, a robber robs one person for a $1000, so the total of $1000 increases in value in a very crude way. In the second case, a business man employs 1000 workers and extracts $100 from each worker and makes $100K. In the third case, a business tycoon reaches millions of people and steals a dollar from each and makes millions, he is the tycoon.

You want to make millions, look at this...” Neerav suddenly grabbed their attention and pointed to the TV. “You cannot earn $10 million. Nobody earns millions. You can rob, you can steal, or you can make $10 million in an IPO, but never earn so much. So just forget all this saving and consulting bullshit. Just look at this.

Your logic may be relevant for the cases you have seen. That is also limited to your interpretation. There are issues like solving the HIV problem, or space travel, which may be worth a lot more than billions. It all depends on your need.

It does not matter how great the idea is (for these IPOs), they cannot be valued simply in billions. For that matter, no skill is worth billions. Look at the contrast here –Four hundred million for chucking somebody out and on the other side people losing their life savings at the age of 60 years? Where do you draw the line? Look at the gap.

The most successful start-ups operate like good ensembles.

The financial press buzzed with news about Ivar and his newfangled gold debentures. The Wall Street Journal reported on October 26, 1923 that the new International Match issue was “spoken of with great admiration among the bond houses. It is probably the finest piece of bond salesmanship we have seen in years.”37 It was one of the largest securities issues of the year, and certainly the hottest initial public offering. As one analyst later described a different kind of IPO, “it was like touching a match to a bucket of gasoline.

Many of those who left described their departure as if they had escaped Jonestown or Waco; those who remained were simply hopeful the company’s IPO would arrive soon so they could cash out and move on.

From his headquarters in Los Angeles, Bob Lorsch had entered the prepaid calling card space and built SmarTalk into a success. I was a VP at Salomon at the time and had heard stories about how crazy and fascinating Lorsch was, so I agreed to work with my colleague Mark Davis on a SmarTalk equity offering a year or so after the company’s IPO. We met at their Los Angeles offices at lunchtime. Lorsch burst into the room like a bad caricature of Danny DeVito, and even though I’d been warned that he was an unconventional CEO, I still wasn’t prepared for the encounter. We had put together the standard detailed presentation that analyzed the state of the public equity markets, how the SmarTalk stock had been performing, who owned it, et cetera. A young Salomon analyst who had been pulling all-nighters to assemble the books sat in a chair near the door. Mark and I passed around the presentation books. “So we’ve prepared a—” I started. “Just tell me,” Lorsch interjected. “Do we have Grubman or not?” Jack Grubman, Salomon’s famed equity analyst, had previously endorsed the SmarTalk IPO with a buy rating. “Yes,” Mark said. “We have Jack. We talked to him prior to the meeting and confirmed that he’ll continue to cover the company and support the offering.” “Then you’re hired,” Lorsch said with a smile, pushing his unopened book to the center of the table. “Let’s eat.” It seemed reckless to have made his decision on so little information, and I could only imagine how the analyst kid near the door felt, sleep-deprived and probably proud of his hard work, only to see the book tossed aside without so much as a cracking of the spine. While we ate the catered lunch that was delivered to the conference room, Mark mentioned that I was in the midst of planning my wedding for that summer. “Don’t get married!” Lorsch advised me. “Terrible, terrible idea.” He described a few of his own ill-fated unions, dropping in crude one-liners to punctuate the stories: “Why buy when you can rent? . . . If it flies, floats, or fucks, don’t buy it! . . .” Despite

Stock IPOs hardly make sense for retail investors. Mutual Fund NFOs make no sense for anyone.

Fables and Fortune Hunters An American businessman took a vacation to a small coastal Mexican village on doctor’s orders. Unable to sleep after an urgent phone call from the office the first morning, he walked out to the pier to clear his head. A small boat with just one fisherman had docked, and inside the boat were several large yellowfin tuna. The American complimented the Mexican on the quality of his fish. “How long did it take you to catch them?” the American asked. “Only a little while,” the Mexican replied in surprisingly good English. “Why don’t you stay out longer and catch more fish?” the American then asked. “I have enough to support my family and give a few to friends,” the Mexican said as he unloaded them into a basket. “But … What do you do with the rest of your time?” The Mexican looked up and smiled. “I sleep late, fish a little, play with my children, take a siesta with my wife, Julia, and stroll into the village each evening, where I sip wine and play guitar with my amigos. I have a full and busy life, señor.” The American laughed and stood tall. “Sir, I’m a Harvard M.B.A. and can help you. You should spend more time fishing, and with the proceeds, buy a bigger boat. In no time, you could buy several boats with the increased haul. Eventually, you would have a fleet of fishing boats.” He continued, “Instead of selling your catch to a middleman, you would sell directly to the consumers, eventually opening your own cannery. You would control the product, processing, and distribution. You would need to leave this small coastal fishing village, of course, and move to Mexico City, then to Los Angeles, and eventually New York City, where you could run your expanding enterprise with proper management.” The Mexican fisherman asked, “But, señor, how long will all this take?” To which the American replied, “15–20 years. 25 tops.” “But what then, señor?” The American laughed and said, “That’s the best part. When the time is right, you would announce an IPO and sell your company stock to the public and become very rich. You would make millions.” “Millions, señor? Then what?” “Then you would retire and move to a small coastal fishing village, where you would sleep late, fish a little, play with your kids, take a siesta with your wife, and stroll to the village in the evenings where you could sip wine and play your guitar with your amigos …

Finally, most of the high returns on IPOs are captured by members of an

IPOs.19 US E-commerce IPOs

Europe’s total banking and trading revenues, $98 billion in 2005, have nearly pulled equal to U.S. revenues of $109 billion. In 2001, 57 percent of high-value IPOs occurred on American stock exchanges; in 2005, just 16 percent did. In 2006, the United States hosted barely a third of the number of total IPOs it did in 2001, while European exchanges expanded their IPO volume by 30 percent, and in Asia (minus Japan) volume doubled. IPOs are important because they generate “substantial recurring revenues for the host market” and contribute to perceptions of market vibrancy.

And so here’s the VC conundrum: whether to focus on early-stage investments, where the risks are higher, the potential returns larger, but the fund size—and thus fee income—is smaller, or on later-stage deals where the risks are lower, the fees fatter, but the opportunities for tenfold returns are much rarer.

If you’re going to fail, fail quick and cheap.’ There’s no stigma in failing that way.

Vision mission: What was the original market or technology insight that led you to create this company? Customers: Who do you envision buying this product or service? Who will use it? Problem statement: What’s the problem you think you can solve for your potential customers? Use cases: What are the specific ways people will use this product or service to solve their problem? Product/solution: Give a detailed explanation of the technology behind the solution—what does it do now, and what else is it capable of doing? Ecosystem: In many cases there are other companies involved in solving the problem or adding additional value. These companies form an ecosystem around the problem and solution. What are all the companies and where in the ecosystem are the control points where one company has leverage? Competition: Who else is trying to solve this problem—or, if no one else sees the problem yet, who might jump in to compete with you to solve the problem once you identify it? Business model: How will your product or service change business for your customers? Will it increase their return on investment or reduce costs in a significant way? Or does it allow them to do something that couldn’t have been done with prior technology, creating huge value? Sales and go-to-market: Enterprise companies should articulate how the product or solution will make its way to the market. Through a sales force? Through distribution partners? Both? For a consumer company, how will users find out about your solution? From app stores? Search? Viral adoption? Growth hacking techniques? Advertising? PR? Organization: How is the company organized? Who are the major influencers on the company? How are decisions made? What kind of culture will work? Funding strategy: What’s the next funding event? A private financing? An IPO? How much runway does the company have before it needs more money and what kind of funding is in place to execute against the category strategy?

There is another unique aspect to thrift conversions. Unlike many IPOs, in which insiders who bought at very low prices sell some of their shares at the time of the offering, in a thrift conversion insiders virtually always buy shares alongside the public and at the same price.

generativity

This is the Rocketship Growth Rate—the precise pace at which a startup must grow to break out. How do you calculate this rate of growth? First, by setting a goal of exceeding a billion dollars of valuation—thus being in a position to achieve an IPO—and working backward. Hitting a $1 billion valuation generally requires at least $100 million in top-line recurring revenue annually, based on the rough market multiple of 10x revenue. You’d want to hit that in 7–10 years, to sustain the engagement of the key employees and also reward investors who often work in decade-long time cycles. These two goals—revenue and time—work together to create an overall constraint. Neeraj Agarwal, a venture capitalist and investor in B2B companies, first calculated this growth rate by arguing that SaaS companies in particular need to follow a precise path to reach these numbers:64 Establish great product-market fit Get to $2 million in ARR (annual recurring revenue) Triple to $6 million in ARR Triple to $18 million Double to $36 million Double to $72 million Double to $144 million SaaS companies like Marketo, Netsuite, Workday, Salesforce, Zendesk, and others have all roughly followed this curve. And the rough timing makes sense. The first phase, in which the team initially gets to product/market fit, takes 1–3 years. Add on the time to reach the rest of the growth milestones, and the entire process might take 6–9 years. Of course, after year 10, the company might still be growing quickly, though it’s more common for it to be growing 50 percent annualized rather than doubling. The argument is that products with network effects both can see higher growth rates as they tap into the various network forces I’ve discussed, and can compound these growth rates for a longer period of time—and looking at the data, I think that’s generally true.

Anti-Network Effects Hit the Google+ Launch A charismatic executive from one of the most powerful technology companies in the world introduces a new product at a conference. This time, it’s June 2011 at the Web 2.0 Summit, where Google vice president Vic Gundotra describes the future of social networking and launches Google+. This was Google’s ambitious strategy to counteract Facebook, which was nearing their IPO. To give their new networked product a leg up, as many companies do, it led with aggressive upsells from their core product. The Google.com homepage linked to Google+, and they also integrated it widely within YouTube, Photos, and the rest of the product ecosystem. This generated huge initial numbers—within months, the company announced it had signed up more than 90 million users. While this might superficially look like a large user base, it actually consisted of many weak networks that weren’t engaged, because most new users showed up and tried out the product as they read about it in the press, rather than hearing from their friends. The high churn in the product was covered up by the incredible fire hose of traffic that the rest of Google’s network generated. Even though it wasn’t working, the numbers kept going up. When unengaged users interact with a networked product that hasn’t yet gelled into a stable, atomic network, then they don’t end up pulling other users into the product. In a Wall Street Journal article by Amir Efrati, Google+ was described as a ghost town even while the executives touted large top-line numbers: To hear Google Inc. Chief Executive Larry Page tell it, Google+ has become a robust competitor in the social networking space, with 90 million users registering since its June launch. But those numbers mask what’s really going on at Google+. It turns out Google+ is a virtual ghost town compared with the site of rival Facebook Inc., which is preparing for a massive initial public offering. New data from research firm comScore Inc. shows that Google+ users are signing up—but then not doing much there. Visitors using personal computers spent an average of about three minutes a month on Google+ between September and January, versus six to seven hours on Facebook each month over the same period, according to comScore, which didn’t have data on mobile usage.86 The fate of Google+ was sealed in their go-to-market strategy. By launching big rather than focusing on small, atomic networks that could grow on their own, the teams fell victim to big vanity metrics. At its peak, Google+ claimed to have 300 million active users—by the top-line metrics, it was on its way to success. But network effects rely on the quality of the growth and not just its quantity

Only a fraction of 1 percent of firms in the United States receive venture backing.[34] But in a study covering the quarter century from 1995 to 2019, Josh Lerner and Ramana Nanda find that VC-backed companies accounted for fully 47 percent of U.S. nonfinancial IPOs;

Thus, even though VC-backed firms accounted for 47 percent of IPOs, they accounted for 76 percent of the market value at the end of the study. They also accounted for fully 89 percent of R&D spending.[35

Had a frothy venture capital sector not been so obsessed with the search for eccentric and visionary founders, WeWork might still occupy only a smattering of buildings in Brooklyn and lower Manhattan. If mutual funds hadn’t rushed into startups, WeWork might have never had the funds to start expanding to surf pools. If Saudi Arabia’s economy hadn’t fallen under the control of a new startup-loving prince desperate to diversify its oil wealth, Masayoshi Son might never have written Neumann a check. If bankers hadn’t been so focused on the prestige and fees from leading a big IPO, perhaps sober advice could have prevailed before a major public embarrassment. When all the forces worked together, people thought as a herd. Optimism supplanted critical thinking. Smart minds were bent so that a real estate company looked like a software company. It was the same effect that allowed mattress companies to look like tech companies. Ride-hailing firms weren’t just glorified taxi services, but were meant to compete with established retail giants. When everyone stood to get rich, everything had infinite potential.

Since the Firm’s IPO, the Founder and the partners have realized that the listed market seems to value more highly the stable, recurring management fees that the Firm brings in, come rain or shine—the two percent—over the larger, supposedly more volatile performance fees that crystallize when investment gains are monetized—the twenty percent. The stock price is largely driven by a regular stream of management fees under long-term contracts, and as assets under management grow for the Firm, the stock’s attractiveness to public market investors increases because this fee pile grows alongside the assets. Of course, there is a strong track record of delivering performance fees on top, because the funds perform well, but these are incremental to the equity story; they do not underpin it. For the stock market, the Two is mission-critical. The Twenty is important, but it is not taken for granted.

Electronics Mart India Limited IPO Details | Upcoming IPO 2022 | Mohit Munjal

When I finished my tour of 154 Grand Street, I noticed that I had several missed calls from an unknown phone number. I stepped outside to call the number back. It belonged to a longtime WeWork executive who heard I was working on a story about the company. He was interested in sharing his experience, but hesitant to speak openly. He stood to benefit handsomely if WeWork successfully made it to an IPO; plus, he had seen how the company treated Joanna Strange and other employees who broke ranks. He believed the business was a good one, but found the ideas WeWork had been spinning up about being a tech company, or revolutionizing education, or improving corporate culture to be laughable. “WeWork has the worst corporate culture I’ve ever encountered in my life,” he said. I heard a similar story from a former WeWork employee I met for an off-the-record conversation a few days later at a coffee shop in Dumbo, near the original Green Desk. “I’ve been involved in some of WeWork’s previous puff pieces,” he said when we sat down. He wanted to know if my article would be one of those.

But WeWork’s rise didn’t shock Schwartz, who had spent part of his career in finance. This was how the system worked. Adam had persuaded one investor after another to believe in his vision; each time he did, previous investors were able to mark up their stakes to escalating valuations, selling shares along the way and passing the risk on to the next fool. Even if WeWork went public and the IPO tanked, Adam owned roughly a fifth of the company, with preferred shares that would allow him to get out before most of his employees. “Let’s say it trades down to a $5 billion valuation,” Schwartz said, throwing out a number more in line with where the London Stock Exchange valued IWG. “Employees will suffer. Investors take a bath. But Adam’s still worth a billion.

SoftBank, however, had invested more than $10 billion into WeWork and gotten nothing in return. The Vision Fund was down nearly $2 billion in the most recent quarter, during which Uber’s stock had slipped. SoftBank shares were down 10 percent since Wingspan’s release. Both WeWork and SoftBank executives were coming to grips with the realization that its IPO might be priced at a level far below its $47 billion valuation. While SoftBank’s preferred shares gave it some protection—it could get its money out before the company’s employees—a valuation below what SoftBank paid for its shares would mean that the firm’s investment was underwater, much as

That afternoon, Berrent called Adam and told him to come to JPMorgan. The biggest problem, the bankers insisted, was Adam himself. One junior Goldman Sachs banker had become so perturbed by Neumann’s behavior during the road-show taping that he had called a colleague at JPMorgan to ask whether Adam was high while filming the video. Noah Wintroub had already told Neumann that he needed to stop smoking so much pot with WeWork’s IPO on the horizon. After Adam arrived at JPMorgan headquarters, Artie took him into another room to ask whether he had been high; Adam insisted that he hadn’t been.

finally the offering was launched on December 11, 2019, on the home court—the much smaller Riyadh stock exchange. Just 1.5 percent of the company was on offer. Still, it finally topped out at $29.4 billion, eclipsing the debut value of China’s Alibaba to become the largest IPO in history.

Throwing even more fuel on this fire was Alibaba’s record-breaking 2014 debut on the New York Stock Exchange. A group of Taobao sellers rang the opening bell for Alibaba’s initial public offering on September 19, just nine days after Premier Li’s speech. When the dust settled on a furious round of trading, Alibaba had claimed the title of the largest IPO in history, and Jack Ma was crowned the richest man in China. But it was about more than just the money. Ma had become a national hero, but a very relatable one. Blessed with a goofy charisma, he seems like the boy next door. He didn’t attend an elite university and never learned how to code. He loves to tell crowds that when KFC set up shop in his hometown, he was the only one out of twenty-five applicants to be rejected for a job there. China’s other early internet giants often held Ph.D.s or had Silicon Valley experience in the United States. But Ma’s ascent to rock-star status gave a new meaning to “mass entrepreneurship”—in other words, this was something that anyone from the Chinese masses had a shot at. The government endorsement and Ma’s example of internet entrepreneurship were particularly effective at winning over some of the toughest customers: Chinese mothers. In the traditional Chinese mentality, entrepreneurship was still something for people who couldn’t land a real job. The “iron rice bowl” of lifetime employment in a government job remained the ultimate ambition for older generations who had lived through famines. In fact, when I had started Sinovation Ventures in 2009, many young people wanted to join the startups we funded but felt they couldn’t do so because of the steadfast opposition of their parents or spouses. To win these families over, I tried everything I could think of, including taking the parents out to nice dinners, writing them long letters by hand, and even running financial projections of how a startup could pay off. Eventually we were able to build strong teams at Sinovation, but every new recruit in those days was an uphill battle. By 2015, these people were beating down our door—in one case, literally breaking Sinovation’s front door—for the chance to work with us. That group included scrappy high school dropouts, brilliant graduates of top universities, former Facebook engineers, and more than a few people in questionable mental states. While I was out of town, the Sinovation headquarters received a visit from one would-be entrepreneur who refused to leave until I met with him. When the staff told him that I wouldn’t be returning any time soon, the man lay on the ground and stripped naked, pledging to lie right there until Kai-Fu Lee listened to his idea.

the rich will get richer because they will be involved in pre-IPO offerings.

As the next page loaded with another set of 25 emails, his eyes were drawn to the bottom of the screen, where for the first time previously-read messages stood out beneath the bold-type unread ones.  There was something powerfully sentimental, almost tangible, about the realization that his dad had sat before a computer somewhere ten years earlier and had clicked on these same messages.  The most recent one, received just hours before his parents’ death, was from his mom with the subject line, “re: Li’l Ryan’s Bday”. With a lump developing in his throat, he clicked on the message.  His mom had written: “That’s something dads should talk to their sons about ;)”  Hmm.  Didn’t make sense without context. Below the end of the message he found the option to “show quoted text,”  which he clicked on to reveal the entire exchange in reverse chronological order.  She had been responding to his dad’s message: “I’m sure he’ll get it.  I like the idea, but you better be prepared to have a discussion about the birds and bees.  You know how his mind works.  He’ll want to know how that baby got in there.” Ryan’s palms grew sweaty as he began to infer what was coming next.  Not entirely sure he wanted to continue, but certain he couldn’t stop, he scrolled to the end. The thread had started with his mother’s message, “I’m already showing big-time.  Sweaters only get so baggy, and it’s going to be warming up soon.  I think tonight would be the perfect time to tell Ryan.  I wrapped up a T-shirt for him in one of his presents that says ‘Big Brother’ on it.  A birthday surprise!  You think he’ll get it?” Having trouble taking in a deep breath, he rose to a stand and slowly backed away from his computer.  It wasn’t his nature to ask fate “Why?” or to dwell on whether or not something was “fair.”  But this was utterly overwhelming – a knife wound on top of an old scar that had never sufficiently healed. ~~~ Corbett Hermanson peered around the edge of Bradford’s half-open door and knocked gently on the frame.  Bradford was sitting at his desk, leafing through a thick binder.  He had to have heard the knock, Corbett thought, peeking in, but his attention to the material in the binder remained unbroken. Now regretting his timid first knock, Corbett anxiously debated whether he should knock again, which could be perceived as rude, or try something else to get Bradford’s attention.  Ultimately he decided to clear his throat loudly, while standing more prominently in the doorway. Still, Bradford kept his nose buried in the files in front of him. Finally, Corbett knocked more confidently on the door itself. “What!” Bradford demanded.  “If you’ve got something to say, just say it!” “Sorry, sir.  Wasn’t sure you heard me,” Corbett said, with a nervous chuckle. “Do you think I’m deaf and blind?” Bradford sneered.  “Just get on with it already.” “Well sir, I’m sure you recall our conversation a few days back about the potential unauthorized user in our system?  It turns out...” “Close the door!” Bradford whispered emphatically, waving his arms wildly for Corbett to stop talking and come all the way into his office. “Sorry, sir,” Corbett said, his cheeks glowing an orange-red hue to match his hair.  After self-consciously closing the door behind him, he picked up where he’d left off.  “It turns out, he’s quite good at keeping himself hidden.  I was right about his not being in Indiana, but behind that location, his IP address bounces

Staying on top of operations data and delivering it in a timely way to the management is the most important job of the finance team.

please don’t ever trade an IPO using market orders.

Kase weaved his fingers into my hair, tugging it so I was looking up. “Miss you, ipo.” I melted into him. “I miss you, too.

I kissed him again before pulling away. “I’m really happy,” I whispered. “I’m glad,” he whispered back. “You make me happy.” His face softened. “Ipo.” “I’ve gotta get going.” His smile turned playful. “Then hold on tight.” Shifting me around to his back, he held me under my legs as he ran through the building and out the door. I laughed the whole time.

At the time that the IPO had been initially mooted,

Attracting investors is as much art as science. To gain an advantage, I get creative. These guys see ten presentations a day. They are inundated with seemingly great companies to invest in. To them, I am just another face in the succession. I have just forty-five minutes to make a pitch, answer questions, and leave an impression, so I create custom T-shirts to help seal the deals. I gained a reputation for doing IPO road show T-shirts with memorable, often tongue-in-cheek, spins. They are the calling cards of our sponsorship. And while I didn’t do the road show for Vigoro, I did commemorate the deal with green T-shirts that read: “People Shoot It, Spread It, Sling It, Step in It and Let It Happen . . . We Make Money with It.

In the early 2000s, new malls were sprouting up all over São Paulo and Rio, and industry ownership, as I’ve mentioned, was highly fragmented. We partnered with a local private equity firm to create BR Malls as a growth platform in 2006, investing $86 million. Roughly a year later, we led BR Malls in an IPO on Brazil’s Bovespa at an equity valuation of roughly R$2.1 billion. The capital enabled BR Malls to lead the industry in acquisitions. Five years later, the company had nearly fifty malls. Total returns for public shareholders were over 26 percent, and BR Malls had an equity market cap of R$10.7 billion. By the time we fully exited the investment in 2010, BR Malls was the largest mall company in Brazil, and we had achieved a 4.2x multiple, or 48.6 percent IRR.

Being thoughtful makes you different.

You know I don’t like to interfere when you make a parenting decision…but this tough love is a little much.

Where does the gate lead…that is inside me? Perhaps these children will tell me.

I was afraid that what came from me would be more powerful than your father’s kindness.

What an adventure you are, Ipo.

Something good has been coming from you for a long time. You’ve just been slow to see it.

The valuations of private and public companies were soaring, and there seemed to be a consensus that the gold rush was beginning. Amid this infrastructure mania, Reliance Power launched an IPO in January 2008 that was oversubscribed seventy-two times! It made the company’s owner, Anil Ambani, the richest Indian. Despite having a power capacity of less than 1,000 megawatts at the time of the IPO, the company’s value was about $35 billion. Did this lead to a large number of IPOs for infrastructure businesses that investors lapped up hungrily? Does the sun rise in the east? Both private and public equity investors in the hyped-up story of Indian infrastructure forgot or chose to ignore some uncomfortable truths: Every infrastructure business is held hostage to the whims and fancies of the government; the government hates to be a paying customer—underpayment and late payment are the rule, not the exception; and even if the government behaves well, the returns on these projects are capped according to law. So why would we want to spend a single minute debating if any power business is worth investing in?

It is dangerous not to care for the small things that need you.

This is the Rocketship Growth Rate—the precise pace at which a startup must grow to break out. How do you calculate this rate of growth? First, by setting a goal of exceeding a billion dollars of valuation—thus being in a position to achieve an IPO—and working backward.

Wall Street’s cynical investment bankers systematically underpriced initial public offerings of stock, or IPOs, enabling the shares to soar by as much as 697% on their first day of trading. That, in turn, made investors desperate to get in on the ground floor of the next IPO. It’s no coincidence that the official disclosure document of an IPO is called a “prospectus,” from the Latin term for “looking forward.

Here’s how it is done. Imagine a hypothetical mutual savings and loan, which we’ll call Magic Wand S&L, or MW, with $10 million in liquidation or book value, and net income of $1 million per year. If MW were a stock bank with one million shares outstanding, each share would have a book value of $10 and earn $1 per share, which is 10 percent of book value. Suppose that if there were such a thing as MW stock, it would, as is typical, trade at one times book value, or $10 per share. Management decides to “convert” MW to a stock savings and loan and issue for the first time one million shares of stock at $10 per share, for proceeds of $10 million. After this initial public offering, or IPO, MW has $10 million in new cash plus the $10 million in equity previously owned by the depositors, for a new total of $20 million in equity. Each share now has a book value of $10 cash plus $10 in contributed equity, for a total of $20. What will the new shares sell for in the marketplace? The contributed equity ought to be worth $10 based on the current market price of comparable stock S&Ls and the $10 in cash ought to be worth another $10, so once the public understands this, we expect the new stock to trade at about $20.