ASSET ALLOCATION

 

A pre-initial public offering (IPO) is a private sale of small or large blocks of shares or units before the stock is listed on a public exchange. The buyers are

• typically private equity firms,

• hedge funds, and

• Other institutions are willing to buy large stakes in the firm.

 

These shares are often, in a small capacity, sold in the secondary market to retail traders. This is the focus of Bache Standard Capital's Trading strategy.

Due to the size of the investments and the risks involved, the buyers in a pre-IPO placement usually get a discount from the price stated in the prospective IPO.

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Overview of a Pre-IPO Placement:

 

From the viewpoint of a young company, a pre-IPO placement is a way to raise money before going public. It also is a way to offset the risk that the IPO price will be optimistic and the price will not go up immediately after it opens.

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• A pre-IPO placement is a sale of large blocks of stock in a company in advance of its listing on a public exchange like the NASDAQ or NYSE.

• The purchaser gets the shares at a discount from the IPO price.

• For the company, the placement is a way to raise funds, find new investors, and offset the risk that the IPO won't be as successful as hoped.

• From the buyer's viewpoint, the amount per share may be discounted from the expected IPO price. The caveat to pre-IPO markets is that there may be stock options or warrants.

• Not many individual investors take part in pre-IPO placements. They are generally restricted to Hedge Funds and their clients.

 

The company, however, does not want these private buyers to immediately sell all their shares if their stock soars once it opens on an exchange. To prevent this, a lock-up period is generally attached to the placement, preventing the buyer from selling shares in the short term.

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Mission Statement

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Our client's interests always come first. We are dedicated to complying fully with the letter and spirit of the laws, rules, and ethical principles that govern our international business practices. Our continued success is reliant upon unwavering adherence to this standard. Our goal is to provide superior returns for our client's investment portfolios. Profitability is critical to achieving special returns, building your capital, and expanding your portfolio diversification. We take great pride in the professional and ethical quality of our responsibility to our investors. We have an uncompromising determination to achieve excellence in every equity investment we undertake on behalf of our clients.

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Business Code of Conduct

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Our Business Code of Conduct and Ethics embodies our commitment to conduct our business under the highest ethical standards and in compliance with all applicable laws, rules, and regulations where your transfer agent and clearing house are involved.

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Transparency and Disclosures

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Our policy is that all information in our public communications, including company SEC filings and pending lodgments for platform public trading, will be fair, accurate, timely, and understandable. All employees and corporate partners involved in our disclosure must act consistently with this policy.