Pre-Digital IPO Bidding

At Halagard we believe Investors who believe in the SMB should set the price per share, not few bankers.

Process Overview

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:

Investor Grouping

  • 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.

Do you want to learn more?

Contact Halagard to learn more about our unique platform and how you may fit into our community.

 

The Halagard Team is excited to bring our solution to the SMB and Private Equity markets and democratize the ability to access capital.

Jeff Hudson
CEO, Halagard