“This is just beyond tremendous,” said IPO Village Mayor Howard Orloff. “This is absolute proof crowdfunding is a major force in the investing world. It is more proof that investors are ready to take advantage of buying stock directly from businesses without having to go through Wall Street, big banks and investment firms. We are ready to take these investors and put their money to work in small businesses.”
IPO Village has a business ready to launch an initial public offering (IPO) within the next 45 days. Those who have signed up with IPO Village and the next 100 investors will have the first chance to buy stock direct from the offering company.
Mr. Orloff said he cannot say much about the pending IPO and the business offering the stock. The Securities and Exchange Commission (SEC) rules require a “quiet period” for a company that plans to issue stock. During that time, the company cannot make announcements about stock offerings. IPO Village’s first direct-to-investor stock offering is in this quiet period.
Once the quiet period is over, the company, its prospectus and other information will be available for review. Then, IPO Village’s list of investors will be offered stock in the company on a first-come, first-serve basis. Mr. Orloff said IPO Village is serious about the first-come, first-serve policy. But those investors who do not get to participate in this first IPO need not worry. He said there’s more on the way and plenty of room for more investors.
“I can tell you we will have more IPOs. We are in negotiations with other companies right now to handle their IPOs. We are actively looking at businesses which have good growth potential and which will benefit from selling stock in the company,” he said. “As more and more companies learn the value of direct-to-public IPOs, this industry will grow. IPO Village will grow right along with them.”
IPO Village has been around a while helping small companies expand, but this is the first direct IPO which IPO has handled from start to finish. Mr. Orloff said he and the staff are excited about this opportunity.
“This IPO is going to show the world a new way to invest in stocks. This IPO is going to set the stage for many more direct-to-the-public public stock offerings. IPO Village is taking control of investing stocks away from the giant brokerage houses, away from giant investment banks and lawyers and putting it right in the hands of the business offering stock and the people who buy that stock,” he said.
Selling stock direct to the public serves another purpose, Mr. Orloff said.
“Any successful business is successful because the customers support it. With direct IPO, the business gives its customers a chance to share in the success. The business is rewarding its customers and growing at the same time,” he said.
The advantages to direct-to-public IPOs are both for the investor and the company. By sidestepping the complex and expensive traditional IPO process, businesses save money. They get the full stock purchase price to invest in the business. When buying direct-to-the-public stock, stock holders pay a true market value for the stock, not what an investment bank believes the stock to be worth.