On June 2, 2021 LifeStance Health Group – the platform for psychiatric treatment, has filed proposed terms for a $640 million IPO.
- Detailed instructions how to participate in LifeStance (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 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 LifeStance IPO
LifeStance Health Group created one of the largest US's platforms for outpatient psychiatric care. The patients may get consulted both online and in any of the LifeStance's centers located in 27 states. The platform is working with over 3,300 licensed doctors.
The company sees its mission in providing more healthy life style by supplying reliable psychiatric services tailored to the patients' needs. The physicians provide full range of services, which includes assessment and treatment, neuropsychologic testing, as well as individual, family, and group therapy.
The company is growing at a very high pace, with the number of patient visits rising from 931,930 in 2018 to 2.29M in 2020. The number of centers in 2020 reached 370 vs 125 in 2018. The revenue is also going up by tripling over the last three years, from $100.30 in 2018 to $377.20M in 2020.
How to Buy LifeStance 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 LifeStance 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 LifeStance shares when the company goes public via a commission-free trading app like eToro.
🚨 Detailed Instructions How to Participate in the LifeStance IPO before public trading:
Below we share the instruction how to participate in the approaching LifeStance IPO using Freedom Finance (Freedom24 platform). This marketplace is chosen as an example because LifeStance is already listed there.
* 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 LifeStance 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.
You can also check on stock advisor services like Motley Fool, Zacks, Morningstar etc, if their analysts have written a review about the upcoming IPO you're interested in.
When is the LifeStance IPO date?
June 8, 2021
What is LifeStance IPO price range?
$15 - $17 per share.
How to Invest in LifeStance after the IPO date (opening price)?
After the IPO you can buy LifeStance stocks via Freedom24 or eToro on the first trading day.
In what currency LifeStance IPO and post-IPO shares will be traded?
The LifeStance 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 LifeStance (stock symbol)
The stock ticker for LifeStance will be LFST
LifeStance Registration Statement on Form S-1
LifeStance Registration Statement on Form S-1
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