Close Menu
  • English
  • Featured
    • AI & Robotics
    • Energy
    • Finance
    • Leisure
    • Science
    • Security
    • Sustainable Development
    • Tech
    • Transport
  • About Us
  • Advertising
  • Contact Us

Subscribe to News

Subscribe to our weekly newsletter to receive the very best articles of the moment, handpicked and delivered straight to your inbox.

Illustration of dark matter particles. Image generated by AI.
“Dark Matter in the Crosshairs”: MADMAX Prototype Unleashed to Capture Universe’s Most Elusive Particles With Extreme Precision
Illustration of the Kosmos 482 spacecraft reentering Earth's atmosphere and crashing into the Indian Ocean. Image generated by AI.
“Space Debris Alert”: Soviet Kosmos 482 Crashes to Earth After 53-Year Orbit, Sparking Fears Over This 1,200-Pound Satellite’s Mysterious Return
Illustration of an advanced headphone system translating multiple speakers simultaneously. Image generated by AI.
“Real-Time Babel Unlocked”: U.S. Researchers Build Headphones That Translate Multiple People Simultaneously With Shocking Accuracy
Facebook X (Twitter) LinkedIn RSS
Rude Baguette
Facebook X (Twitter) RSS
Newsletter
  • Featured
  • AI
    Illustration of swarm robots performing tasks without sensors, inspired by nature's simplicity. Image generated by AI.

    “Robots Without Code or Eyes”: Swarm Machines Copy Nature’s Genius to Operate Freely in Uncharted Environments

    May 16, 2025 at 6:50 AM
    Illustration of autonomous soft robots powered by air and inspired by inflatable tube dancers. Image generated by AI.

    “Soft Robots Go Solo”: These Inflatable-Inspired Machines Navigate Autonomously Without a Single Line of Code or Electronics

    May 15, 2025 at 9:58 AM
    Illustration of humanoid robots performing high-precision welding tasks in a shipyard. Image generated by AI.

    “Robot Welder Lands in Korea”: U.S. Firm Unleashes Humanoid Machine to Revolutionize Shipbuilding with Precision and Speed

    May 15, 2025 at 7:07 AM
    Illustration of MIT's advanced table tennis robot returning a shot with precision and speed. Image generated by AI.

    “Robot Smashes at 42 MPH”: MIT’s AI Table Tennis Machine Delivers Blazing Shots with Jaw-Dropping 88% Precision Rate

    May 15, 2025 at 6:03 AM
    Illustration of Chris Pelkey delivering a victim impact statement in court (AI-generated, unrealistic). Credit: Ideogram.

    “Dead Man Speaks in Court”: AI Clone of Murder Victim Confronts Killer Face-to-Face in Chilling U.S. Legal First

    May 14, 2025 at 7:10 AM
  • Energy
    Illustration of the first-ever operational thorium reactor in the Gobi Desert (AI-generated, unrealistic). Credit: Ideogram.

    “A New Nuclear Era Begins”: Thorium Reactor Breaks the Rules With Safer, Cleaner, and More Abundant Atomic Power Revolution

    May 14, 2025 at 3:47 PM
    Illustration of the Three Gorges Dam in China and its potential impact on Earth's rotation (AI-generated, unrealistic). Credit: Ideogram.

    “China Disrupts Earth’s Rotation”: NASA Confirms Planet-Slowing Project With Shocking Global Effects Already Underway

    May 13, 2025 at 3:51 PM
    Illustration of Alpha Ring's Fusion AI Data Centre connecting global fusion research labs (AI-generated, unrealistic). Credit: Ideogram.

    “Fusion Labs Now Linked”: US Builds Super Device to Unite Global Reactor Tests and Accelerate Nuclear Breakthroughs

    May 11, 2025 at 7:08 AM
    Illustration of the breakthrough in fusion energy development, highlighting the resolution of magnetic containment flaws (AI-generated, unrealistic). Credit: Ideogram.

    “Scientists Finally Break the Fusion Barrier”: US Team Fixes 70-Year Energy Flaw in Stunning Scientific Breakthrough

    May 8, 2025 at 4:58 PM
    Illustration of researchers observing restricted heat flow in high-energy-density plasma using lasers (AI-generated, unrealistic). Credit: Ideogram.

    This Super-Hot Plasma Test Just Changed Everything: US Fires Up 180,000°F Fusion Blast in Monumental Scientific Milestone

    May 7, 2025 at 4:58 PM
  • Finance
    Illustration of Visa's integration of AI systems into digital payments (AI-generated, non-realistic illustration). Credit: Ideogram.

    Visa’s AI Is Now Shopping for You: This Robot May Soon Swipe Your Card Automatically—and Mess With Your Mind

    May 4, 2025 at 8:07 AM
    Microsoft Strikes Unprecedented Deal: World's Largest CO2 Removal at 7.44 Million Tons, Setting New Environmental Milestone

    “Microsoft Strikes Historic Climate Deal”: World’s Largest CO2 Removal Pact Targets 6.75 Million Tons in Unmatched Green Push

    April 19, 2025 at 9:55 AM
    RLWRLD Stuns Tech World With $15.6 Million Fundraise to Revolutionize Robotics: Unleashing Unprecedented Innovations That Will Shock the Industry

    “Robots Just Got Smarter”: RLWRLD Raises $14.8 Million to Build Groundbreaking Foundational AI Model for the Future of Robotics

    April 17, 2025 at 6:47 AM
    Marshmallow's Meteoric Rise: British Migrant Insurance Startup Secures $90 Million, Surges Past $2 Billion Valuation in Unprecedented Move

    “Built for Outsiders, Backed by Billions”: UK’s Marshmallow Raises $90 Million as Migrant-Focused Insurtech Soars Past $2 Billion Valuation

    April 17, 2025 at 6:02 AM
    Why the tech industry needs a labor/union movement

    Why the tech industry needs a labor/union movement

    October 2, 2022 at 3:39 PM
  • Leisure
    Illustration of Mark Zuckerberg's luxury superyachts journey to Norway's fjords for a heliskiing adventure (AI-generated, unrealistic). Credit: Ideogram.

    “Even the U.S. Is Shocked”: Zuckerberg’s 5,300-Mile Yacht Voyage and Helicopter Ski Drop Redefine Billionaire Excess

    May 13, 2025 at 9:49 AM
    Illustration of the delayed release announcement for Grand Theft Auto VI by Rockstar Games (AI-generated, unrealistic). Credit: Ideogram.

    Total Shock for Gamers Worldwide: GTA VI Now Postponed to 2026 After Rockstar Vows to Redefine the Entire Franchise

    May 7, 2025 at 5:49 AM
    Illustration of the delayed release of GTA VI and its implications for the gaming industry (AI-generated, unrealistic). Credit: Ideogram.

    “Red Dead Proves the Wait Is Worth It”: Rockstar’s Masterpiece Shows Why GTA 6 Delay Could Deliver Gaming’s Next Big Legend

    May 6, 2025 at 4:47 PM
    Illustration of HBO's adaptation of The Last of Us exploring character depth and emotional storytelling (AI-generated, unrealistic). Credit: Ideogram.

    The Last of Us Reinvented: Season 2 Takes Bold Step Beyond the Game’s Limits in Stunning, Unforgettable Storytelling Move

    May 6, 2025 at 12:14 PM
    Illustration of the highly anticipated PlayStation 6 console with advanced features and technologies (AI-generated, unrealistic). Credit: Ideogram.

    “PlayStation 6 Is Coming Fast”: Sony’s Next Console May Launch Much Sooner Than Anyone Predicted, Shocking the Gaming World

    May 6, 2025 at 10:03 AM
  • Science
    Illustration of dark matter particles. Image generated by AI.

    “Dark Matter in the Crosshairs”: MADMAX Prototype Unleashed to Capture Universe’s Most Elusive Particles With Extreme Precision

    May 16, 2025 at 4:46 PM
    Illustration of the Kosmos 482 spacecraft reentering Earth's atmosphere and crashing into the Indian Ocean. Image generated by AI.

    “Space Debris Alert”: Soviet Kosmos 482 Crashes to Earth After 53-Year Orbit, Sparking Fears Over This 1,200-Pound Satellite’s Mysterious Return

    May 16, 2025 at 4:14 PM
    Illustration of the cosmic phenomenon of false vacuum decay and its potential impact on the universe (AI-generated, unrealistic). Credit: Ideogram.

    “Universe Could Implode Instantly”: False Vacuum Theory Suggests Reality Itself Is Balancing on a Terrifying Quantum Edge

    May 14, 2025 at 12:14 PM
    Illustration of early humans crafting bone tools 1.5 million years ago (AI-generated, unrealistic). Credit: Ideogram.

    This Discovery Changes Human History: Ancient Tools From 1.5 Million Years Ago Reveal Astonishing Intelligence of Early Homo Species

    May 14, 2025 at 10:08 AM
    Illustration of time reflections in a metamaterial setup reversing electromagnetic waves (AI-generated, unrealistic). Credit: Ideogram.

    “Time Reflections Are Real”: Scientists Unveil These Mind-Bending Phenomena That Could Change Our Understanding of Reality Forever

    May 14, 2025 at 8:49 AM
  • Security
    Illustration of the BlueWhale System, an advanced autonomous underwater vehicle designed for naval warfare, equipped with sophisticated sensors (AI-generated, unrealistic). Credit: Ideogram.

    “Unstoppable Sea Phantom”: This 40-Foot Drone Submarine Dominates Ocean Warfare, Packed with Massive Combat-Ready Payloads for Ultimate Naval Supremacy

    May 11, 2025 at 5:04 PM
    Illustration of the FP-1 long-range drone being unveiled during Ukraine's Infantry Day celebrations (AI-generated, unrealistic). Credit: Ideogram.

    Ukraine Unleashes Game-Changing 1,000-Mile Drone: This Aerial Beast Hauls 265-Pound Explosive Payload, Shattering Boundaries of Modern Warfare

    May 11, 2025 at 11:47 AM
    Illustration of Recce360 Deep Inspection Camera operating in a high-security, nuclear environment (AI-generated, unrealistic). Credit: Ideogram.

    “Indestructible Spy Bot Deployed”: US Unveils First-Ever Nuke-Proof Robot to Guard Missile Silos With Unstoppable Surveillance

    May 11, 2025 at 8:07 AM
    Illustration of the "White Emperor" fighter mockup showcased at the 2024 Zhuhai Airshow (AI-generated, unrealistic). Credit: Ideogram.

    “China’s White Emperor Breaks the Rules”: Stunning New Fighter Jet Could Redefine Air Superiority and Shock Global Militaries

    May 10, 2025 at 3:56 PM
    Illustration of Latvia's autonomous kamikaze drone, BLAZE, engaging enemy UAVs (AI-generated, unrealistic). Credit: Ideogram.

    This Latvian Drone Has Russia Stunned: Under-60-Second Strikes Ignite Panic in Kremlin Defense Circles

    May 9, 2025 at 4:46 PM
  • Impact
    Illustration of Bill Gates announcing his $200 billion donation plan and the future closure of the Gates Foundation. Image generated by AI.

    “$200 Billion Goodbye”: Bill Gates to Shut Down Gates Foundation by 2045 After Record-Setting Final Donation Pledge

    May 15, 2025 at 4:03 PM
    Illustration of Iceland's successful implementation of a four-day workweek and its impact on productivity and well-being (AI-generated, unrealistic). Credit: Ideogram.

    “Gen Z Was Right All Along”: Iceland’s 4-Day Workweek Proves a Massive Success Five Years After Bold National Shift

    May 12, 2025 at 7:54 AM
    Illustration of the majestic Jeddah Tower under construction, symbolizing architectural innovation and cultural preservation (AI-generated, unrealistic). Credit: Ideogram.

    “Saudi Arabia Unleashes Construction Fury”: This Mind-Blowing 3,280-Foot Jeddah Tower Set to Shatter Global Records and Redefine Skyscraper History

    May 6, 2025 at 3:59 PM
    Illustration of the ambitious Neom project and The Line skyscrapers amidst the Saudi Arabian desert (AI-generated, unrealistic). Credit: Ideogram.

    “Unprecedented Crisis Looms”: This Massive $500 Billion Construction Site Faces Catastrophic Delays as 10,000 Workers Sound the Alarm

    May 6, 2025 at 7:08 AM
    Illustration of revolutionary nickel extraction using hydrogen plasma to reduce emissions (AI-generated, non-realistic illustration). Credit: Ideogram.

    “Green Battery Revolution Begins”: New Nickel Extraction Cuts Emissions by 84% and Could Transform the Entire EV Industry

    May 4, 2025 at 6:53 AM
  • Tech
    Illustration of an advanced headphone system translating multiple speakers simultaneously. Image generated by AI.

    “Real-Time Babel Unlocked”: U.S. Researchers Build Headphones That Translate Multiple People Simultaneously With Shocking Accuracy

    May 16, 2025 at 12:06 PM
    Illustration of the brightest and most efficient pure-red PeLEDs developed in China. Image generated by AI.

    Red Light Revolution Erupts as Chinese Scientists Set Jaw-Dropping Efficiency Record With Purest and Brightest LEDs Ever

    May 16, 2025 at 9:59 AM
    Illustration of a robotic arm holding a futuristic semiconductor. Image generated by AI.

    AI Chips Now Traceable: New U.S. Bill Mandates Built-In Tracking to Crush Black Market and Combat Tech Smuggling

    May 16, 2025 at 9:13 AM
    Illustration of the Teal Wand, an innovative at-home cervical cancer screening device. Image generated by AI.

    “Cervical Cancer Test Goes Home”: FDA Approves At-Home Kit to Revolutionize Screening and Save Lives Across the Country

    May 16, 2025 at 8:10 AM
    Illustration of NVIDIA's modified H20 AI chip for the Chinese market. Image generated by AI.

    “U.S. Sanctions Trigger Chip Shake-Up”: NVIDIA Unleashes Slimmed-Down AI Beast in China to Outmaneuver Export Ban

    May 16, 2025 at 5:56 AM
  • Transport
    Illustration of Rocket Lab's Neutron rocket demonstrating space-based cargo delivery. Image generated by AI.

    “Space Rockets for War Cargo”: Pentagon Plans Orbital Delivery System to Drop Supplies Anywhere on Earth Within Minutes

    May 15, 2025 at 5:09 PM
    Illustration of the Boom Supersonic XB-1 aircraft achieving supersonic flight without a sonic boom (AI-generated, unrealistic). Credit: Ideogram.

    This Plane Just Did the Impossible: Achieved Supersonic Speed Without Creating a Sonic Boom in Historic Aviation Breakthrough

    May 14, 2025 at 4:57 PM
    Illustration of the Streetwing flying car showcasing its innovative design and dual-functionality (AI-generated, unrealistic). Credit: Ideogram.

    This Flying Car Isn’t for Commuting: The Streetwing Is Designed Solely to Explore the Sky Like Nothing Ever Seen Before

    May 14, 2025 at 6:11 AM
    Illustration of Airbus's innovative foldable wing technology for enhanced aviation efficiency (AI-generated, unrealistic). Credit: Ideogram.

    Airbus Shocks the Aviation World With a Jet Whose Folding Wings Dramatically Cut Fuel Burn and Boost Efficiency

    May 12, 2025 at 5:11 PM
    Illustration of a Tesla Cybertruck sitting idle in a parking lot (AI-generated, unrealistic). Credit: Ideogram.

    “Rotting on a Lot for Months”: This Shocking Tesla Discovery Left a U.S. Buyer Completely Stunned at Delivery

    May 12, 2025 at 6:58 AM
  • English
Rude Baguette

Rude VC: Intro to IPOs: US vs. France

Eirwen WilliamsBy Eirwen WilliamsMay 15, 2012 at 6:10 AM05 Mins Read
Share Twitter Facebook LinkedIn Telegram WhatsApp Email Copy Link
Follow Us
Google News
Share
Twitter Facebook LinkedIn WhatsApp Email Copy Link

If you’ve been reading the French press recently, you are no doubt aware that this week represents the start of a new adventure… I’m of course referring to the imminent road show for Facebook’s IPO.

 Already affecting a billion people on the planet, and probably 100% of RudeBaguette readers, Facebook strikes me as the perfect trigger to kick off a discussion on this blog about IPO’s, specifically their role in European venture-backed technology startups. This post represents the first installment of a multi-part series on the topic.

Today we’ll first discuss a few IPO basics, and in a later post touch on the specific implications for our market here.

This is only the beginning…

One could be forgiven for viewing the IPO event as an end goal. The media encourages this notion by reporting on the ‘home run exits’ for the VC’s, or on the newfound wealth of company founders and early employees, as if now they all hit the jackpot and are taking all their chips off the table. But like the first word in the I.P.O. acronym, the IPO event is really more of a beginning than an end for a company and most of its stakeholders.

An initial public offering is the first sale of stock by a company to the public. A company can raise money by issuing either debt or equity (the joke in France is that there’s a third option: subsidies). Anyway, when raising money via equity, a company can tap accredited investors (e.g. VC funds, high net worth ‘sophisticated’ individual investors, or other institutions and corporations); or additionally, a company can offer shares to the public markets. When restricting its equity issuances to a limited number of accredited investors, the company remains private. In the latter case, the company takes on the new status of public company, begins trading on a public stock exchange, and becomes subject to a new regulatory framework, governed by the SEC in the U.S. (the AMF in France) designed to protect public investors.

Pros and Cons

The Wikipedia entry on IPO’s discusses the fundamentals in more detail, but in summary the rationale for a company to consider going public can encompass the following:

  • Strengthening and broadening the equity base
  • Starting the process of creating liquidity for the initial shareholders
  • Attracting and retaining employees through equity on a liquid market
  • Facilitating future access to capital and creating new financing opportunities
  • Exposure, prestige and public image
  • Facilitating acquisitions

And of course being public can entail any number of drawbacks:

  • Significant legal, accounting and marketing costs
  • Ongoing requirement to disclose financial and business information
  • Meaningful time, effort and attention required of senior management
  • Risk that required funding will not be raised
  • Public dissemination of information which may be useful to competitors, suppliers and customers
  • Increased pressure on short-term financial performance

Process

The process of going public typically involves one or more investment banks which are known as “underwriters”. The company going public enters into a contract with the lead underwriter to sell its shares to the public. In a song-and-dance routine dubbed the “road show,” the underwriter approaches investors with an offer to sell the company’s common shares. Upon selling the shares, the underwriter(s) keep a commission based on a percentage of the value of the shares sold.

In addition to investment banks, and because of the wide array of legal requirements, IPO’s typically involve one or more law firms with a deep practice in securities law.

Public offerings are sold to both institutional investors (such as mutual funds, or in France, SICAV’s and even tax fund management firms) and to retail customers (the general public, e.g. widows and orphans). Because of the tendering of shares to the general public, the process is closely regulated. For example, in France a company going public must obtain two steps of authorization from the AMF, and publish a detailed prospectus (‘document de référence’) while adhering to a variety of deadlines and notice periods.

Following the road show and compliance with all regulatory requirements, the underwriter sets a deadline for the investment commitments from the institutional and retail investor groups. At some point almost in parallel, the company and its advisors will likely choose one of two primary ways of setting the price of the shares being sold: either i) by announcing a fixed price, or ii) by going through a process of ‘book-building’ in which the underwriter attempts to gauge investor demand for the IPO and thus determine the most appropriate price which will ensure the fundraising target amount is met.

If and when the targeted fundraising amount is attained, the IPO operation will generally be deemed a success. The underwriter often is allowed to increase the size of the public offering by up to 15% under certain circumstances (known as the ‘greenshoe’ option).

The investment bank underwriting the IPO will often also initiate research coverage on the company so that their corporate finance department and retail division can attract and market new issues.

Stock Exchanges

Finally, a word on the public markets. The stock exchanges with some minimum degree of pan-European exposure that would be relevant for a French company are:

  • Euronext (which in France includes the Alternext and the Marché Libre)
  • OMX (headquartered in Stockholm)
  • London Stock Exchange and AIM
  • Deutsche Börse

Additionally, practically every European country boasts its own stock exchange (Borsa Italiana, Helsinki Stock Exchange, etc.) which generally is more appropriate (and often restricted, even) to listings in the home country.

We’ll elaborate on these points further in the context of European tech companies in a future post.

Did you like it? 4.4/5 (24)

Subscribe to News

Subscribe to our weekly newsletter to receive the very best articles of the moment, handpicked and delivered straight to your inbox.

alternext euronext Facebook IPO
Follow on Google News Follow on X (Twitter)
Share. Facebook Twitter LinkedIn Telegram WhatsApp Email Copy Link
Previous ArticleScientipole replaces bootstrapping for French startups
Next Article Paris & Berlin – The tale of two cities (Part 1: The facts you can't ignore)
Related Posts
Illustration of Visa's integration of AI systems into digital payments (AI-generated, non-realistic illustration). Credit: Ideogram.

Visa’s AI Is Now Shopping for You: This Robot May Soon Swipe Your Card Automatically—and Mess With Your Mind

Microsoft Strikes Unprecedented Deal: World's Largest CO2 Removal at 7.44 Million Tons, Setting New Environmental Milestone

“Microsoft Strikes Historic Climate Deal”: World’s Largest CO2 Removal Pact Targets 6.75 Million Tons in Unmatched Green Push

RLWRLD Stuns Tech World With $15.6 Million Fundraise to Revolutionize Robotics: Unleashing Unprecedented Innovations That Will Shock the Industry

“Robots Just Got Smarter”: RLWRLD Raises $14.8 Million to Build Groundbreaking Foundational AI Model for the Future of Robotics

Add A Comment
Leave A Reply Cancel Reply

Subscribe to News

Subscribe to our weekly newsletter to receive the very best articles of the moment, handpicked and delivered straight to your inbox.

Illustration of dark matter particles. Image generated by AI.
“Dark Matter in the Crosshairs”: MADMAX Prototype Unleashed to Capture Universe’s Most Elusive Particles With Extreme Precision
Illustration of the Kosmos 482 spacecraft reentering Earth's atmosphere and crashing into the Indian Ocean. Image generated by AI.
“Space Debris Alert”: Soviet Kosmos 482 Crashes to Earth After 53-Year Orbit, Sparking Fears Over This 1,200-Pound Satellite’s Mysterious Return
Illustration of an advanced headphone system translating multiple speakers simultaneously. Image generated by AI.
“Real-Time Babel Unlocked”: U.S. Researchers Build Headphones That Translate Multiple People Simultaneously With Shocking Accuracy
News by category
  • English
  • Tech
  • Finance
  • Leisure
  • Transport
  • Science
  • Security
  • AI & Robotics
  • Energy
  • Sustainable Development
Information
  • Meet the Team
  • Legal notice
  • Privacy policy
  • About Us
  • Advertising
  • Contact Us
  • About Us
  • Advertising
  • Contact Us

Subscribe to News

Subscribe to our weekly newsletter to receive the very best articles of the moment, handpicked and delivered straight to your inbox.

Facebook X (Twitter) RSS
© RudeBaguette.com. All rights reserved.

Type above and press Enter to search. Press Esc to cancel.