Invest in IPOS (OPVS): Finally, available to anyone
You may not be familiar with the term "Initial public offering" (IPO) or public sales offer (OPV) inSpanish, but we will tell you that it represents a potentially lucrative opportunity to invest in various companies before they go to the market.
In this article we will enter the universe of the IPOS.You will learn what they are, what they are for and how to take advantage of them in your investment strategies.You can also appreciate the result the most recent IPOS.
And that is not all, since you will know firsthand what are the next IPOS to get to the market for 2022.
Many investors seek to participate in IPOS but are limited by their own broker.In addition, these offers are concentrated in the hands of institutional actors and private funds, but those limitations have ended with Freedom24 from Freedom Finance, a European investment platform that has managed to democratize the IPOS.
For the first time in Europe, participation in public sales IPOS or offers is available for retail investors through the mentioned investment platform, which enjoys excellent reputation and is duly regulated by multiple European and American regulators.(At the end of the article we tell you all the details so you can take advantage of this unusual opportunity).
What is an IPO or public sales offer?
An IPO refers to the process through which a private company that does not quote on the stock market offers its actions to the public through an issue of shares in the primary capital market.
It is worth noting that during the IPO an initial price is set and the shares are marketed.However, it is from the date of Ipart.
To opt for the IPO, a company must meet all the financial and legal requirements required by the respective stock market where it aspires to quote, as well as its regulatory body.
For example, a company that aspires to quote on the NYSE must meet the requirements it requires, as well as those of the U.S.Securities and Exchange Commission (SEC) as its regulatory body.
This process may take several months and requires that the company hire a subscriber, usually an investment bank.This one makes the valuation of the company, estimates the initial price, the amount of shares, the date of IPO, also generates interest, attracts demand and trades the supply.
What is an IPO for?
An IPO is a mechanism that allows a private company to raise capital to finance its long -term expansion and growth.
For many analysts that maturity is achieved from valuations greater than 1 billion dollars.So not any company can be made public overnight.
However, there may be cases of companies with less valuations to that figure that compensate with their tremendous benefit potential.
There are other mechanisms to raise funds, however, IPOS are one of the most advantageous for companies.
An IPO also allows the original founding members and investors to recover the capital placed in the company through the partial or total sale of their shares.
This can be done after the IPO, after a period set by the authorities called "Lock-up period" or "closing period".
During this period, these privileged shareholders and others that the authorities determine could not sell their shares on the market for the sake of transparency and price stability.
How to invest in an IPO and obtain benefits?
IPOS can produce important price movements from the IPO, which can be an opportunity to make great benefits, although it also involves losing money as is the case in any investment.
8 basic recommendations to invest in an IPO
1. Revisa cuidadosamente el prospecto de la empresa
All critical information must be careful, particularly short and medium term sales prospects.
2. Identifica los competidores directos de la empresa objeto de la IPO
Look at the price of your shares and its market capitalization, as they will be key aspects to compare.If the departure price is excessive, the market can discount value and the price fall significantly.
3. Ten en cuenta el Período de Cierre o “Lock Up Period”
Remember that many institutional investors will place money in the IPOS and can take benefits at the end of this period as well as insiders, causing strong price drops, especially when it is estimated that the market value has gone too far regarding the intrinsic value of the business.
4. Define una estrategia de inversión de acuerdo con tus características y perfil de riesgo
If you are going to operate in the short and medium term, we recommend you to be aggressive and take benefits to profits from 100% to 200%.Institutional investors will do it without hesitation.
If you are going to operate in the long term and your investment is profitable in the first weeks or months, do not leave the market unless there is a change in fundamental tendency in action.
Remember that the market moves in cycles of optimism and pessimism, therefore, if your action begins to lower you can consider liquidating your position with benefits and repurchase a higher amount at a lower price if there is true growth potential.
5. Haz una adecuada gestión monetaria de tu capital
Do not compromise a too high percentage of your funds in a single operation.You must leave a reserved margin to be able to withstand adverse movements.
If you are going to participate in an IPO defines the maximum loss you are willing to accept so as not to compromise your capital in the long term.It is not easy to define it, but you should consider it in your risk management.
If in an offer the action becomes against the beginning, assumes a reasonable loss quickly and reassess the situation when the price stabilizes.Perhaps the action has real potential but the output price was very high.
6. Combina el análisis técnico con el análisis fundamental para monitorear la acción
Use the analysis of trends and indicators such as the MACD and the volume in conjunction with the fundamental analysis based on the core aspects of the company and its competitive environment.
7. Participa en aquellas IPOs que supongan un potencial más alto por la naturaleza del modelo de negocio
Evaluate whether the company shows palpable competitive advantages that ensure or even increase your market share.Monitor the output of new products and services.
8. Considera el contexto general de la economía y sus perspectivas más inmediatas
It is a very important filter to make the decision to participate or not in an IPO.Sometimes it can be better to expect the turbulence periods to buy at better prices.
Benjamin Graham, the father of the philosophy of Value Investing or Investment in Value affected among its maxims that an intelligent investor is nothing more than a realist who sells to optimists (at maximum) and buys from pessimists (in minimums).
So there is no reason not to capitalize on important benefits in the short term.And if the action does not accompany, there is also no reason to maintain a losing position for too long.
Most recent IPOS: What tells us empirical evidence?
To appreciate the benefits potential that Freedom24 offers you through participation in the next IPOS, we will see some study cases based on companies that were made public in 2019. A nivel estadístico, el crecimiento medio en el precio de las acciones de las IPOs que ofrece Freedom24 una vez acabado el periodo de lock-up del del +59%, a fecha de 10 de enero de 2022.
The Zacks Investment Research firm evaluated in an analysis published on August 18, 2019.
Two years have passed since then and it is worth observing the performance of some of these companies in the market:
BEYOND MEAT INC.(Bynd)
Next we observe the weekly Japanese candle chart, volume and MACD for the action of the company of meat products of vegetable origin quoted in the Nasdaq.
The graphic covers a period of time of two and a half years from its IPO to the present.
The price of the IPO was set at $ 25.00 per share and the IPO was completed for May 1, 2019, so that from the initial week it materialized important profits.
After 13 weeks in July of that year the price reached a maximum of $ 239.71;An impressive 858.8% gain.
As is natural in these cases, the end of the closing period or Lock-UP implies important price adjustments as institutional investors can settle positions to make benefits.
That is why it is recommended to be aggressive and consolidate benefits as the actions begin to retreat after the lock-up.With similar profit, an investor could wait for the stabilization of the price and repurchase more shares.
During the Covid-19 Pandemia, the price reaches a minimum of $ 48.18 in March 2020.A reasonable price to enter again. La empresa alcanzó un máximo de 197,50$ en octubre de ese año, lo cual habría supuesto ganancias interesantes otra vez.
In fact, the volume showed a participation above the average and the MACD a bull divergence.
The company marks a new maximum of $ 221.00 in January 2021, but then the price begins to descend to date with little volume and a bassist divergence in the MACD.During the January 20, 2022 session the price reached $ 63.49 before closing.
Participation in this IPO was a success for investors who had the opportunity.In fact, the action never returned to levels close to the IPO price of $ 25.The price even reflects a support close to $ 40 per share.
A flexible approach to invest involves taking benefits in winning operations when necessary.
Those investors who participated in the IPO and have kept their position open so far are winning 153.9% judging by the last price, but lost two opportunities to take even greater profits to buy more shares in relative minimums.
Uber Technologies Inc.(Uber)
We now observe the weekly Japanese candle chart, volume and MACD for the action of the application company in transport services quoted in the NYSE.
The price of the IPO was set at $ 45.00 per share and the IPO was completed for May 10, 2019.
However, in this case the price of the action has tended to go down, and this combined with the Covid-19 Pandemia led Uber to a minimum of $ 13.71 in March 2020, for a disappointing 69.5% lossRegarding IPO price.
Zacks Investment Research attributes this behavior to the fact that this company had already received huge amounts of capital while it was still private.So that it already had relatively important funds.
Certainly, those investors who opened purchase positions from this point from the stimulus plans and the superxpansive monetary policy, managed to acquire this action at a price probably much lower than their intrinsic value.
The company reaches a maximum price of $ 64.05 (+ 42.3%) in February 2021 to decrease below the IPO price twice.So that this business model must still clear certain doubts for investors.
At this time the action is traded with low volume and in negative territory in the MACD.
Other interest rates: Zoom, Pinterest, Levis, Lyft ...
Other important companies carried out IPOS in 2019 and some of them show formidable results as of January 20, 2022:
Zoom Video Communications (ZM), a company of information and communication technologies, launched an IPO price of $ 36.00 and quoted to date at $ 155.81 (+ 332.8%).However, it reached a maximum of $ 588.84 in October 2020 (+ 1.535.7%).
Tradeweb Markets Inc.(TW), a company of electronic services for trading platforms, launched an IPO price of $ 27.00 and quoted at $ 91.15 to date (+ 237.6%).
Pinterest inc.(Pins), an interactive media services company, launched an IPO price of $ 19.00 and quoted at $ 31.94 (+ 68.1%).However, it reached a maximum of $ 89.90 in February 2021 (+ 181.5%).
LeviStrauss & Co.(LEVI), a clothing and textile company, launched an IPO price of $ 17.00 and quoted at $ 21.27 (+ 25.1%).Reached a maximum of $ 30.84 in May 2021 (+ 81.4%).
UPSTART HOLDINGS INC.(UPST), a cloud loan company with AI technology, launched an IPO price of $ 20.00 and quoted on January 21, 2022 to $ 92.72 (+ 363.6%).However, it reached a maximum of $ 401.49 in October 2021 (+ 1.907.5%).
Bioatla (BCAB), a biopharmaceutical company that develops cancer treatments, launched an IPO price of $ 18.00 and quoted to date at 10.07 $ (- 44.1%).However, it reached a maximum of $ 76.63 in March 2021 (+ 325.7%).
Dlocal Ltd.(DLO), a company that operates a global payment platform, launched an IPO price of $ 21.00 and quoted to date at $ 25.43 (+ 21.1%).However, it reached a maximum of $ 73.43 in August 2021 (+ 249.7%).
The last two cases show that an investment approach to Flexible IPOS should be handled: you must pay you as the market places money in your pocket.
There are also cases with little promising results such as the Lyft Inc company.(LYFT), specialized in shared transport services, which launched an IPO price of $ 72.00 and quoted at $ 37.60 (- 47.8%).
But this is part of the nature of the investment and its inherent risks.However, the possible benefits if invested from the IPO can be considerable, as we have seen in this section.
The most promising IPOS of 2022
As Emily Bary commented on a marketwatch report published on December 21, 2021, technology companies dominated the largest agreements to go to the market during 2021 and this is expected to continue in 2022 with the presence of many companies in the sectorFintech.
With Freedom24 (https: // Freedom24.com/) You have all the information about the next IPOS to go to the market for 2022 and beyond.In addition, as soon as you register for free on the platform you will start receiving ems andSMS (without any cost) informing you of the next IPOS.
Do you want to know which are the most striking companies to go out soon?Here you have a small sample.
La IPO deStarlink
Starlink offers high -speed satellite Internet services, even in the most remote locations on the planet.A significant amount of satellites have already been placed in orbit and it is estimated that their network will be made up of about 4.000 satellites when completed.
This huge project was announced by Elon Musk in 2015 and has privately raised more than 10 billion dollars, but requires much more investment.
Therefore, Musk indicated in 2020 thatStarlink's IPO is necessary, although it depends on the behavior of the company and its indicators to specify.
By 2021Starlink had a capitalization of 72 billion dollars and a planned investment of 20 billion.
> Más información de la IPO deStarlink
Tik Tok IPO
The matrix firm of Tik Tok, Bytedance, has created Tik Tok Global to adapt to sanctions and regulations on Chinese technology companies.
This new firm already has all the rights and the source code of the application to be able to work in the US.UU.Under the new rules.
Tik Tok already has about 200 million users only in the US.UU.In addition, the possibility of making campaigns and advertisements through the platform is open.So the income generation potential is huge.
As part of the new rules, Oracle and Walmart acquired the actions of the new company and the management positions are occupied by American citizens.The preliminary assessment of Tik Tok is 50 billion dollars.
> Más información de la IPO de TikTok
Reddit is an online platform that has become very popular due to its forums and discussion communities.
It is already one of the 20 most visited sites in the world and it is estimated to receive about 52 million daily visits.
The company is valued at 10 billion dollars and is preparing the details to launch its IPO.
> Más información de la IPO de Reddit
The IPO of Discord
Discord is an application that offers free messaging services, as well as access to video and audio conferences.
The application can work under different environments such as Windows, IOS, Android, as well as in the browser version.
It is estimated that the platform has more than 140 million users.The company is valued at 7 billion dollars.
Nothing less than Microsoft showed interest in acquiring this company for 10 billion dollars, but the negotiation did not crystallize.
It has already advanced several steps and the announcement of its IPO date is expected soon.
> Más información de la IPO de Discord
Klarna is aSwedish financial technology company that owns one of the world's largest digital banks.Among its services it offers deferred payment agreements for a wide range of retail products.
Klarna operates in more than 20 countries and already has 90 million users.
The company's valuation is 46 billion dollars and its management team is considering raising more capital from an IPO that could occur for 2022.
> Más información de la IPO de Klarna
IPO de Instacart,Stripe, Impossible Foods…
Instacart, an online service delivery service.
Stripe, an online payment service with thousands of customers worldwide.
Chime, one of the largest digital banks in the US.UU.
Databricks, a company that offers data storage and platform for artificial intelligence applications.
Impossible Foods, a company that produces vegan products based on plants for a growing market niche.
If you want to get more information about public sales offers you can do it through Investing.com, in the IPO Calendar section.Alternatively, if you create an account in Freedom24 (https: // freedom24.com/ipo), you will receive free notices every time a new IPO comes out.
Why invest in IPOS with Freedom24?
When you choose a broker you are looking for 5 crucial elements to make the decision to open your investment account with him.
These elements are safety and reliability, a policy of low commissions, a good platform, a wide portfolio of products and excellent customer service.Freedom Finance through its FREEDOM24 platform offers you great advantages in these 5 elements:
Security and regulation
Freedom24 is a Freedom Finance Europe LTD company., is the European subsidiary of Freedom Holding Corp., the only European investment and trading platform that is quoted at Nasdaq (FRHC).
Cuenta con licencia CySEC europea CIF 275/15 expedida en fecha 20-05-2015 y una calificación crediticia a largo plazo “B” deStandard & Poor’s Global Ratings.
Report to 3 regulators: Federal FinancialSupervisory Authority (BAFIN) of Germany, Cyprus securities and exchange compression of Cyprus (CYSEC) and U U.S.Securities and Exchange Commission (SEC) de EE.UU.In Spain Freedom24 is registered in the National Securities Market Commission, with registration number 4547 and license to offer investment services throughout the European Economic Space.In addition, it has offices in Germany, Spain, Greece and Cyprus.
Its high regulatory standards, together with the unusual offer of investment products, makes Freedom24 one of the fastest growing investment and trading platforms in Europe with more than 400.000 clients.
Currently Freedom24 offers a promotion for new customers of 0% in commissions about your operations for 30 days.
Luego, pasas al tipo de cuenta de tu elección entre 3 planes distintos:Smart, Fix ySuper, los cuales se adaptan al perfil transaccional del inversor.In the most “expensive” plan the commission for purchase of an action is, only € 0.02.
In conclusion, their commissions are extremely low compared to other European brokers.
The FREEDOM24 platform allows you to open your investment account in just a few minutes and deposit credit card or bank transfer funds without commissions.
You can operate for free through web terminal 24/7.It also has an excellent mobile application.
Its interface is simple, clean and intuitive to open positions and you can also visualize the investment graphics.It has an orientation for medium and long -term investment, rather than for intra -dialing trading.The ease of use of its platform and intuitive design makes it a platform suitable for both novel and veterans in the sector.
Customer Service and Investor Support
It offers customer support 24/7 in many languages, including Spanish (as we have mentioned, they have branches in Madrid, Spain).In addition, you have an attention chat on its FREEDOM24 platform.
In addition, Freedom24 puts investment ideas at your disposal for free every week.The Freedom24 analysis center was awarded the best of 2020 by Global Banking and Finance Review.
Product and investment portfolio in IPOS
You have access to more than 1.000.000 stock assets between shares, ETF’s, bonds, futures and options in the most important bags in the world.In other words: it is a portfolio of extraordinarily broad investment products.It also offers a remunerated account with an annual 3% rate.
Its star product is the IPOS or public sales offers, being the only European investment and trading platform that allows you to participate in them from only 2.000 $.
With this expected product you get along with institutional investors, you no longer have to line up.The possibility of obtaining yields of up to 3 digits is within your reach.
Importante: la asignación de acciones en las IPOs en Freedom24
It is important to mention that in Freedom24 each client has a maximum assignment of actions that can be acquired in an IPO.Being an exclusive product with limited availability, the platform must mark purchase limits.These limits are calculated according to the “rating” of each client, a scale that is established transparently depending on the portfolio and activity level.
The broader and strong.Thus you will get a greater assignment of actions in the IPOS.
In other words, if you want to obtain a high assignment in the next IPO it is important that you register soon in Freedom24 and keep your active account (in your profile you can monitor your client “rating” and know what assignment you will have for the next IPO).
> Abre tu cuenta gratis en Freedom24 y prepárate para la próxima IPO <
For all the reasons mentioned we think that Freedom24 is an excellent alternative to invest.The possibility of participating in IPOS is undoubtedly the jewel of the crown.
It only remains on your part to choose the most potential companies and apply the recommendations that we have given to obtain benefits in these operations, before only available for institutional investors and large investment banks.