How to participate in the Upcoming Coursera IPO

Coursera – the US massive open online course provider is launching its IPO in the NYSE on March 30. Founded in 2012 by Stanford University's computer science professors Andrew Ng is considering an initial public offering IPO in 2021 that could give the company a valuation of around $5B, according to Bloomberg and people familiar with the matter.

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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 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 Coursera IPO

Coursera is valued at $2.60B, and its IPO is one of the most anticipated among all companies in the education industry. Founded back in 2012 by two Stanford University professors, the company aims at educating millions of students from all over the world, while also changing the way of traditional teaching.

The competition includes similar education services, such as Udemy, which is valued at $3B and is also planning an IPO in 2021.

In its first funding round, Coursera raised $16M from Kleiner Perkins Caufield & Byers and New Enterprise Associates. The second round brought $63M, and then, subsequently, seven more followed, all being successful.

In July 2020, Coursera got $130M more from 19 large investors. Since its inception, the company raised $443M.

Coursera has over 200 partners in 29 countries, including large colleges, universities, and corporations.

How to Buy Coursera 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 Coursera 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 Coursera shares when the company goes public via a commission-free trading app like eToro.

Your capital is at risk. Other fees apply. For more information, visit etoro.com/trading/fees.

🚨 Detailed Instructions How to Participate in the Coursera IPO before public trading:

Below we share the instruction how to participate in the approaching Coursera IPO using Freedom Finance (Tradernet platform).  This marketplace is chosen as an example because Coursera is already listed there.

• Pros: almost all high-profile IPOs are available for participation via Freedom Finance, no eligibility requirements, no number of previous trades needed and low minimum investment amount for participating in an IPO.
• Cons: the user interface of the platform is a bit outdated.

* Freedom Finance services are NOT available to US citizens and residents.

1. 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.
2. Deposit your account — to participate in an IPO, your account must have available funds in the amount you send IPO application for.
3. 💡 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.
4. Submit a request to participate in the IPO — when applications are open select Coursera 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.
5. 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.
6. 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.
7. 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 Coursera IPO date?

Mar 30, 2021

What is Coursera IPO price range?

Coursera set an initial IPO price range between $30 and $33 a share.

How to Invest in Coursera after the IPO date (opening price)?

After the IPO you can buy Coursera stocks via Tradernet on the first trading day. Also you can use a commission-free trading app like eToro

In what currency Coursera IPO and post-IPO shares will be traded?

The Coursera 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.

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What is the Coursera (stock symbol)

COUR

Coursera Registration Statement on Form S-1

Coursera Registration Statement on Form S-1

Sources used: Bloomberg, Forbes