An Initial Public Offering (IPO) is an exciting time for a company and its prospective investors. What many don’t know, though, is that several interesting, behind-the-scene details are often revealed during an IPO — the sort of telling details that provide fascinating insights into a company.
Here are just a few intriguing details about some certain popular companies found through their IPOs.
According to data revealed from Facebook’s IPO back in 2012, there were 845 million monthly active users of the social network back then. Since it generated about $3.7 billion in revenue the previous year, each Facebook profile could be said to have an approximate value of $43.79.
Twitter is not as safe a bet as one might think. According to its IPO, the social media company’s biggest risk factor is boredom. The company said in its filing that if people don’t perceive it to be useful, reliable, or trustworthy, it can’t increase engagement with its ads. It’s also not consistently profitable, either. In 2011, it actually lost $128 million.
Shake Shack, one of the nation’s premier fast food chains, recently launched an IPO, and revealed that it plans to open 10 new company-owned domestic locations per year, starting in 2015. These locations deliver an incredible return on investment, too, apparently. According to the company, Shake Shacks located outside of Manhattan recoup the original cash investment in 3.2 years after opening, while Manhattan Shacks recoup the money in 1.2 years on average.
If you’re thinking about doing a public or private placement offering, you’d be wise to work with securities law firms’ PPO or IPO attorneys, since the Securities Exchange Commission (SEC), the agency that enforces corporate securities law, has been on the hunt recently. In 2014, the SEC’s enforcement division brought 755 cases and collected a record $4.1 billion. That year, the SEC charged more than 135 parties with violations relating to reporting and disclosure, and another 80 people in cases involving trading on the basis of inside information.
If you have any questions about corporate securities law, private placement offerings, or private placement securities, feel free to share in the comments.