Hacker News Reader

Comment by TekMol | Hacker News Reader

Would be great if someone with knowledge on how to read an S1 could help me figure out these two basic questions:

What percentage of the company gets sold in the IPO?

And does that money go into the company or does it go to existing shareholders?

This S1 does not say how many shares they expect to sell, so at this time its unclear what percentage of the company new investors will hold. Presumably before the IPO date, it will be updated so investors have an understanding of what they are buying.

Thanks. How does one find the complete S1 when it is updated?

For example, how can this information be found for Coinbase?

SEC/Edgar

Hashicorp

https://www.sec.gov/edgar/search/#/dateRange=custom&ciks=000...

Coinbase

https://www.sec.gov/edgar/search/#/dateRange=custom&ciks=000...

And in these results is the info on what percentage of coinbase has been sold via the IPO? Where?

The PO in IPO is public offering, meaning new shares are created. So generally speaking, the amount raised goes to the company. Dilution is a factor of what's raised and the vaulation. If you raise a 10% round, you dilute by 10%, so 10% is sold. It varies by company and preference. Existing shareholders can typically sell after the lockup (for common share holders, like founders and employees) and at any time (for preferred share holders, whose shares convert into unrestricted common shares as part of the IPO).

> What percentage of the company gets sold in the IPO?

S1 does not specify the amount.

> And does that money go into the company or does it go to existing shareholders?

The money goes to the company.

... after commissions are paid to the investment bankers involved in the offering.

IPOs sometimes sell shares held by existing shareholders. The final S-1 should disclose any sales by existing shareholders. When you see them in roadshow, check for the final S-1.

Statements that proceeds will go to the company are not necessarily correct.

Reply on news.ycombinator.com