ON24 – the company that provides cloud platform for hosting webinars and virtual events has filed to raise $409 million from the sale of its common stock in an initial public offering.
- Detailed instructions how to participate in ON24 IPO (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 (Goldman Sachs, JP Morgan, KeyBanc Capital in ON24 case). Once the paperwork done, the company sells the stock to institutional investors. When the initial block of shares has been sold, the company sets an initial price and date for the stock to begin trading on a stock exchange.
Financial Indicators before ON24 IPO
ON24 is a company providing a cloud platform for hosting webinars and virtual events. The company recently appointed a new CMO and expanded its marketing technology market with the launch of RevNEXT.
Major competitive or other industry participants include Zoom, Microsoft, Google, Amazon.
ON24's recent financial results can be summarized as follows:
- Sharply growing topline revenue in 2020
- Increasing gross profit and gross margin
- A swing to operating profit and positive operating margin
- A swing to cash flow from operations
As of Sept. 30, 2020, ON24 had $52.7M in cash and $135.3M in total liabilities. Free cash flow during the 12 months ended Sept. 30, 2020, was $21.8M.
Since its inception, the company has raised $72.40M from Goldman Sachs, Gold Hill Capital, US. Venture Partners, Canaan Partners, and other venture investors.
How to Buy ON24 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 ON24 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 ON24 shares when the company goes public via a commission-free trading app like Webull.
🚨 Detailed Instructions How to Participate in the ON24 IPO before public trading:
Below we share the instruction how to participate in the approaching ON24 IPO using Freedom Finance (Tradernet platform). This marketplace is chosen as an example because ON24 is already listed there and available for participation.
* 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.
- Submit a request to participate in the IPO — select ON24 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 52%, past IPOs data.
When is the ON24 IPO date?
Feb 2, 2021
What is ON24 IPO price range?
Price range is $45 to $50 per share.
How to Invest in ON24 after the IPO date (opening price)?
After the IPO you can buy ON24 stocks via a commission-free trading app like Webull on the first trading day.
What is the ON24 ticker (stock symbol)
The stock ticker for ON24 will be ONTF