A bunch of coworkers said that it wouldn't be good for us (employees) if we IPOed soon. This is because we're just starting to focus on revenue instead of growth. It will likely take a few years to fully roll out our revenue infrastructure. Since our revenue will likely go up significantly in the next few years, our valuation would likely be much higher in a few years. Therefore, they said we shouldn't IPO soon, since the IPO price would be relatively low. They said it's better for them if we IPO in a few years, then we'll likely have a much higher IPO price.
I pointed out that if we IPOed now, they can just hold on to the stock until it rises in a few years. They tried explaining that what I'm saying doesn't make sense, but I didn't really get it.
For an employee who just wants to sell their equity for a high price, does it matter if a company's IPO price is high or low? E.g. if a share is worth $10 now and it'll be worth $50 in 5 years, does it matter if we IPO now at $10 or IPO in 5 years at $50, if we're selling at $50 either way?
Submitted June 01, 2017 at 03:41AM by linksku http://ift.tt/2sqaIT1
