Transparent IPO Allocation Process

1min Snip

00:00

Play full episode

Summary

Transcript

Episode notes

The process leading up to an IPO pricing meeting is often invisible and opaque, with the bank typically making allocation decisions without much input from the company. However, in this case, the company wanted to ensure transparency and control over the share allocation process. They insisted on having a say in who received shares and on concentrating shares to a smaller group at a higher level than typical. This led to a constructive dialogue with the bank, showcasing the significance of expertise and orchestration in the lead up to an IPO, in stark contrast to the 'black box' allocations of the past.

In 2022 and 2023, US IPOs hit decade lows after the record high of 2021. Now, in 2024, will the IPO window reopen?

In this episode, we revisit a conversation with Jeff Jordan, former CEO of OpenTable, and J.D. Moriarty, the former Head Managing Director and Head of Equity Capital Markets at Bank of America Merrill Lynch.

Joined by Sonal Choksi, the pair takes you behind the scenes to unravel the complexities surrounding IPOs, including pricing, allocations, and the elusive "pop." They also discuss OpenTable’s IPO, which occurred immediately following the worst financial crisis since the Great Depression, and weigh in on the question: Can you time an IPO in an unpredictable year?

Resources:

Find Jeff on Twitter: https://twitter.com/jeff_jordan

Find J.D on LinkedIn: https://www.linkedin.com/in/jdmoriarty

Find Sonal on Twitter: https://twitter.com/smc90

Stay Updated:

Find a16z on Twitter: https://twitter.com/a16z

Find a16z on LinkedIn: https://www.linkedin.com/company/a16z

Subscribe on your favorite podcast app: https://a16z.simplecast.com/

Follow our host: https://twitter.com/stephsmithio

Please note that the content here is for informational purposes only; should NOT be taken as legal, business, tax, or investment advice or be used to evaluate any investment or security; and is not directed at any investors or potential investors in any a16z fund. a16z and its affiliates may maintain investments in the companies discussed. For more details please see a16z.com/disclosures.