On Aug 27, 2021 – Freshworks, a SaaS company (CRM Salesforce competitor) founded in India but now based in Silicon Valley, has filed for a US Initial Public Offering (IPO).
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- Detailed instructions how to participate in Freshworks (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 (Morgan Stanley/ J.P. Morgan/ BofA Securities/ Jefferies/ Barclays in Freshworks 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 Freshworks IPO
Freshworks, an Indian company, was started in 2010. Customers can use its products to run their businesses more effectively, with the help of features such as organizing staff messages, deploying a chatbot for customer service, and taking advantage of call centre solutions that cut wait times. Freshworks technology was developed for various company departments, including customer service, sales, marketing, human resources, information technology, and others.
Over 50,000 businesses use Freshworks SaaS to improve the quality of customer and employee experiences as well as automate monotonous operations. Cisco Networking Academy for IT specialists and General Electric Corporation are among the company's major clientele.
Freshworks' revenue in 2020 was $ 249.66 million, a 44 per cent increase over the previous year.
Investors and their money are also attracted to the company. Freshworks has raised $484 million in funding over the course of its existence. CapitalG LP, Tiger Global PIP, Sequoia Capital, Global Growth Fund III, and Accel India III are the major shareholders.
Freshworks' IPO valuation might reach $10 billion.
|Revenues||$308.1 mil (last 12 months)|
|Net Income||$-1.85 mil (last 12 months)|
How to Buy Freshworks 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 Freshworks 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 Freshworks shares when the company goes public via a commission-free trading app like Webull.
🚨 Detailed Instructions How to Participate in the Freshworks IPO before public trading:
Below we share the instruction how to participate in the approaching Freshworks IPO using Freedom Finance (Freedom24 platform). This marketplace is chosen as an example because Freshworks is already listed there.
🎁 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 Freshworks 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 Freshworks IPO date?
Freshworks's IPO date is September 15, 2021.
What is Freshworks IPO price range?
Freshworks IPO price range is not defined yet. We will update when the Freshworks IPO offering price is known – if you want to get notified please subscribe for updates here.
How to Invest in Freshworks after the IPO date (opening price)?
After the IPO you can buy Freshworks stocks via Freedom24. Or if you're from the US use a commission-free trading app like Webull on the first trading day.
In what currency Freshworks IPO and post-IPO shares will be traded?
The Freshworks 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 Freshworks (stock symbol)
The stock ticker for Freshworks will be FRSH
Freshworks Registration Statement on Form S-1
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