RetireJapan

Asking for a friend here , working for a pre-IPO startup. Apparently they are in a 持株会 and eventually when their company IPOs they will become the owner of some shares.

So, the best strategy is to sell em as soon as you get em? Any sense on holding on to them for the longer term and maybe getting bought out or something?

sutebayashi wrote: ↑Sun Oct 06, 2024 10:51 am Asking for a friend here , working for a pre-IPO startup. Apparently they are in a 持株会 and eventually when their company IPOs they will become the owner of some shares.

So, the best strategy is to sell em as soon as you get em? Any sense on holding on to them for the longer term and maybe getting bought out or something?

There are a heck of a lot of factors that would go into that decision.

Is there a lockup period end? (When can they sell share?)

What do independent analyst say about the stock?

Do they need this money for something important? Does/could it represent a large part of their net worth.

Would sales be reported to the company, and how would the company culture react to a complete sale?

sutebayashi wrote: ↑Sun Oct 06, 2024 10:51 am Asking for a friend here , working for a pre-IPO startup. Apparently they are in a 持株会 and eventually when their company IPOs they will become the owner of some shares.

Sounds like stock options rather than 持株会. Odds are the company won't go public, so the question is rather moot .

Many Private companies do allow employees to buy into the business, but as the Company is Private, the shares are not traded on any exchange, and so until IPO, if they wanted to sell they would get the 'Internal Share Price' with the Partners / Company being the only buyers.

If they wait until after IPO, there is a good chance that they would get significantly more than the 'Internal Share Price', but the actual price might fluctuate above or below the IPO Price. Who knows? That is the gamble they take.