Is Stripe going to IPO?
2020 was an insane year for companies going public. Boosted by the tremendous demand for technology and electric vehicle stocks, not to mention the frenzy of blank-check SPAC companies, the number of initial public offerings (IPOs) in the U.S. doubled to 494, raising a collective $174 billion, which was up 150% from the prior year, according to FactSet.
Still, there was one high-profile holdout β Stripe. Many expect the IPO to get launched in 2021 and it will likely be bigger than any of the hotly anticipated IPOs β including Coinbase, Instacart and Roblox.
Stripe now is the most valuable private company Silicon Valley has produced after closing a $600m fundraising valuing the company at $95bn.
- Below you will find detailed instructions how to participate in the Stripe IPO (pre-IPO, offering price)π
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 sets an initial price and date for the stock to begin trading on a stock exchange.
Financial Indicators before Stripe IPO
In October, a private valuation pegged the company's valuation at roughly $36 billion. A report from Bloomberg published late in November then said that Stripe was seeking to raise funds through selling stakes valuing the company between $70 and $100 billion. Considering how hot the market for IPOs has been and the extent to which shares for promising tech companies have been bid up in early auction trading, the stock could hit the market at levels valuing the company significantly above $100 billion.
In September 2019, the latest investment round brought the company $600M. In a single year, Stripe's value almost doubled, as in April 2010 it was worth $36B. Overall, based on the results of all investment rounds, the company managed to raise $2B.
Meanwhile, the Collinson brothers' fortune is around $4.30B, they being among the top 10 youngest billionaires, as reported by Forbes USA.
According to some experts, after the IPO, the company may get worth anything from $45B to $100B. Despite the already far-reaching goal, the company still has some room for growth. Thus, in 2020, Stripe acquired Paystack, a Nigeria based payment service provider, the acquisition deal being worth $200M.
How to Buy Stripe Stocks Before Stripe 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 Stripe 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 Stripe shares when the company goes public via a commission-free trading app like eToro.
π¨ Detailed Instructions How to Participate in the Stripe IPO before public trading:
Below we share the instruction how to participate in the approaching Stripe IPO using Freedom Finance (Freedom24 platform). Β This marketplace is chosen as an example because Stripe IPO is already listed there.
π Special limited time offer for European Union citizens or residents aged at least 25 years - you will get a free share if you now open a verified Freedom24 account through this link. The value of a stock that you will receive in your account may vary in the range of USD $600, with companies like Netflix, Ford, Microsoft etc.
* Freedom Finance services are NOT available to US citizens and residents.
- Apply for a Freedom Finance account β 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 β to participate in an IPO, your account must have available funds in the amount you send IPO application for.
- π‘ 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 β when applications are open select Stripe 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 β 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 β 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 β a 93-day period of prohibition on sale. You canβt sell stocks, but you can track their current value and growth indicators in your personal member area and a trading terminal.
- Closing your trade β At the end of the 93 days lock-up period, you will be able to manage your stocks at your discretion β 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 βSellβ 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 Stripe IPO release date?
Stripe's IPO date is not defined yet.
We will update when the exact Stripe date IPO is known β if you want to get notified please subscribe for updates here.
What is Stripe IPO price range?
We will update when the Stripe IPO offering price is known β if you want to get notified please subscribe for updates here.
Instruction How to Invest in Stripe after the IPO date (opening price)?
After the IPO you can buy Stripe stocks via Freedom24 on the first trading day. Or if you're from US use a commission-free trading app like eToro.
π Special limited time offer for European Union citizens or residents aged at least 25 years - you will get a free share if you now open a verified Freedom24 account through this link. The value of a stock that you will receive in your account may vary in the range of USD $600, with companies like Netflix, Ford, Microsoft etc.
In what currency Stripe IPO and post-IPO shares will be traded?
The Stripe 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 (thatβs the one youβll find on Google) which can be done via a fintech service like Transferwise. 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. TransferWise never hides fees in the exchange rate.
What is the Stripe's ticker (stock symbol)
We will update when the Stripe IPO ticker is known β if you want to get notified please subscribe for updates here.
Stripe IPO news
- Mar 14, 2021 β Stripe has closed a $600m fundraising valuing the company at $95bn.
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