On September 14, 2021 – Clearwater Analytics, an investment management software company backed by buyout firm Welsh Carson, is aiming for valuation of $4B in its NYSE initial public offering (IPO).
- Detailed instructions how to participate in Clearwater Analytics (pre-IPO, offering price) see below👇
What is an IPO and how it works
IPO is a process of offering shares of a private corporation to the public in a new stock issuance. Why go public? The primary benefit of going public is easier access to capital.
To go public, a company must have a track record of growth and other favorable results and hire an investment bank (Goldman Sachs/ J.P. Morgan/ Morgan Stanley/ Credit Suisse/ RBC Capital Markets/ Wells Fargo Securities/ Oppenheimer & Co./ Piper Sandler/ William Blair in Clearwater Analytics case) to come in and underwrite the IPO. The underwriters also performed due diligence and verified financial information and business model.
Once the paperwork done, the company sells the stock to institutional investors. When the initial block of shares has been sold, the company with underwriters' help sets an initial price and date for the stock to begin trading on a stock exchange.
Company Profile and Financial Indicators before Clearwater Analytics IPO
Clearwater provides cloud-native software that allows clients to simplify their investment accounting operations. Its platform provides comprehensive accounting, data, and advanced analytics, as well as highly-configurable reporting for global investment assets daily or on-demand. The company serves more than 1,000 clients, and it has achieved an approximate 80% win rate for new clients over the prior four years in deals that reached the proposal stage. Clearwater has a 100% recurring revenue model, charging clients a fee primarily based on the amount of assets they manage on the Clearwater platform, subject to contracted minimums.
Clearwater Analytics Holdings was founded in 2004 and booked $226 million in revenue for the 12 months ended June 30, 2021
Market Cap $2609.8mil
Revenues $226.0 mil (last 12 months)
Net Income $-27.0 mil (last 12 months)
How to Buy Clearwater Analytics Stocks Before the IPO (Offering Price)
In the past, IPOs as highly profitable investments were available only to the privileged customers of the leading brokerage firms and it was challenging for retail investors to gain access. You couldn't buy shares paying the price set by the company and you had to wait until the shares actually start trading on the public stock market at whatever stock price supply and demand allows.
Technologies and marketplaces changed the rules of the game, now regular investors can get pre-IPO shares. To participate in Clearwater Analytics IPO you need to use an IPO investing app like Freedom Finance (NASDAQ: FRHC), TD Ameritrade or Fidelity. They give its customers access to IPOs and secondary offerings through their existing brokerage account. Also you can buy Clearwater Analytics shares when the company goes public via a commission-free trading app like eToro or Webull.
🚨 Detailed Instructions How to Participate in the Clearwater Analytics IPO before public trading:
Below we share the instruction how to participate in the approaching Clearwater Analytics IPO using Freedom Finance (Freedom24 platform). This marketplace is chosen as an example because almost all high profile IPOs get listed on this platform.
🎁 A special offer is available for this IPO.
*** Freedom Finance services are NOT available to US citizens and residents.
- Apply for a Freedom Finance account — you need to prepare your identity document and a document confirming the address of residence (utility bill). The verification process is very fast, it will take 2 minutes to create your account.
- Deposit your account — to participate in an IPO, your account must have available funds in the amount you send IPO application for.
- 💡 Tip: It's recommended to deposit your account in advance. Often the exact IPO date is undefined until the last day. You may have a short notice for participation and account deposits also takes time for processing. Also, sometimes Freedom sends last-minute IPO offer when you have 2 hours to participate.
- Submit a request to participate in the IPO — when applications are open select Clearwater Analytics and click Participate in the IPO > input the amount you want to invest > Send your application. Note: Before the book closing, a request can be withdrawn. At the time of the book closing, 1 day before the start of the exchange trading, the specified amount will be blocked on the account.
- Wait for allocation — The actual number of stocks purchased during an IPO depends on supply and demand. The higher underwriter reserves the right to partial execution of collective applications. So if the demand is high you may get less than you applied for. Of course, you will only pay for the shares purchased. The rest of the funds will be returned to your account.
- Start of trading — With the beginning of the public trading on the stock exchange, the purchased shares will appear on the account and a lock-up period will start — a 93-day period of prohibition on sale. You can’t sell stocks, but you can track their current value and growth indicators in your personal member area and a trading terminal.
- Closing your trade — At the end of the 93 days lock-up period, you will be able to manage your stocks at your discretion — leave in the portfolio or sell and withdraw money or transfer the stocks to another depository/ broker in your name. This can be done in your account by clicking the ‘Sell’ button next to the name of the security. In this case, a commission of 0.5% of the amount of the sale transaction is charged.
Is investing in IPOs profitable?
Not always. The average return at the end of the lock-up period is 72%, past IPOs data.
When is the Clearwater Analytics IPO date?
Clearwater Analytics's IPO date is September 24, 2021.
What is Clearwater Analytics IPO price range?
Clearwater Analytics IPO price range is $14.00 - $16.00 per share.
How to Invest in Clearwater Analytics after the IPO date (opening price)?
After the IPO you can buy Clearwater Analytics stocks via Freedom24. Or if you're from the US use a commission-free trading app like eToro on the first trading day.
In what currency Clearwater Analytics IPO and post-IPO shares will be traded?
The Clearwater Analytics IPO and stock trading currency will be USD.
If you have funds in another currency the cheapest way to convert your currency is to use the mid-market rate (that’s the one you’ll find on Google) which can be done via a fintech service like Wise. Banks may add hidden markups to their exchange rates - charging you more without your knowledge. And if they have a fee, they charge you twice. Wise never hides fees in the exchange rate.
What is the Clearwater Analytics (stock symbol)
The stock ticker for Clearwater Analytics will be CWAN
Clearwater Analytics Prospectus
Clearwater Analytics Registration Statement on Form S-1
Airbnbase
Sources used: Reuters, Renaissance Capital
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