Pre-Digital IPO Bidding
At Halagard we believe Investors who believe in the SMB should set the price per share, not few bankers.
To help ascertain a securities fair market value, every Digital Initial Private Offering (IPO) conducted on the Halagard platform undergoes a pre-bidding process. During this process, a percentage of the shares created for an SMB Digital IPO are set aside for the bidding process, so Investors can set a fair market price for the shares. How the process works:
- Investors are divided into 3 different groups based upon their net worth (Accredited Investors, Qualified Purchasers, Institution Investors)
- Each Investor group bids to participate in the process, the top 5 bids for each group are granted access to the Digital IPO bidding process.
On the day of the of the Pre-Digital IPO bidding
- Each group will bid based upon their view of the fair market value per share
- groups bid independent of each other but at the same time
- Bidding process is a reverse Dutch auction – price increments down until a winning price is selected
- Winning bidder in each group will buy shares at the price they selected
- Consensus calculation takes the 3 winning bids (1 from each group) and determines a consensus price per share
- The price per shares at the Digital IPO is equal to the Consensus prices + x% uplift
- Based upon the Digital IPO price and capital raise requirements a final number of shares available at the Digital IPO is set.
Digital IPO is executed
Wild price swings post Digital IPO creates a win-lose scenario. Our process will create a win-win for all parties.