You bought it. They sold. Meet some insiders who have unloaded $ 35 billion

A year ago, Heather Hassan and Katherine “Trina” Spear traveled from Santa Monica, California to New York to ring the opening bell on the New York Stock Exchange. FIGS’s co-chief executive, an online retailer of high-end clothing for healthcare professionals, delighted with their initial public offering with people joining them on the Bell podium wearing stylish scrubs.

FIGS capitalized on some strong epidemic-era trends, and, at the IPO, its shares sold for $ 22, raising 580 million. FIGS IPO has even tapped into the retail market, becoming the first IPO to be made available to users of the Robinhood Trading App.

However, most of the money raised in the IPO did not go to the company. Instead, the গেছে 450 million revenue went to Tulco Holdings, a company controlled and operated by Hollywood movie-studio billionaire Thomas Tool. Tull’s holding company FIGS has invested about $ 65 million in FIGS
Over the past four years and has become its largest shareholder, the securities filing shows.

“The market for healthcare clothing is huge. It is a বাজার 12 billion market in the United States. That’s $ 79 billion worldwide, Spear said from the floor of the New York Stock Exchange on the day of the IPO. “We actually think these numbers are somewhat neglected.”

With fashionable face masks and a direct-to-consumer online model that has become popular with investors, FIGS shares have risen sharply to 50. Four months after the IPO, in September 2021, FIGS announced a secondary offer at $ 40.25 per share.

This time Hassan, 40, and Spear, 38, were in action. In the secondary offer, Hasson sold $ 94 million FIGS shares and Spear sold $ 59 million, the securities filing shows. Tull’s company has sold another stake in FIGS shares in a secondary offer. Overall, Tull’s company sold $ 822 million worth of shares from the IPO, according to an analysis of securities filings conducted by research and analytics firm VerityData.

But this year investors have begun to question the story of FIGS growth and the general outpouring around new direct-to-consumer models. Wall Street analysts are skeptical that the total address market for stylish scrubs is as big as Spear’s demand. Investment bank Cowen, for example, kept a note stating that the market was much harder to pin down and that employment growth among healthcare workers seemed to be slowing.

Shares of FIGS have declined. The stock recently traded at 10. 10.16, 54% lower than the 2021 IPO and 75% lower than FIGS’s secondary offer. Anyone who buys and holds the $ 975 million shares sold by Tull’s company, Hasson and Spear, is sitting at a huge loss. The entire company was valued at $ 1.7 billion.

“After the company was formed and its value increased for more than a decade, FIGS co-founders Heather Hassan and Trina Spear sold a small percentage of their total holdings in the same period and the amount FIGS shareholders were allowed to sell on IPO lockup terms. . FIGS said in a statement. “Although macro conditions subsequently affected the overall stock market, Heather and Trina continue to invest more than anyone else in the long-term success of FIGS as two of the company’s largest shareholders.”

Tull declined to comment.

With the rise of the stock market, 2021 has brought an IPO bonanza. More companies have been listed on the U.S. stock exchange in 2021 than in any other year, through traditional IPOs, direct listings and special-purpose acquisition companies or SPACs. Dealogic says more than 1,000 new companies have listed their shares on the US exchange and raised $ 315 billion. Wall Street investment bankers have pushed every company they find in the public market by accepting $ 10 billion in fees for their efforts. Goldman Sachs GS,
JPMorgan Chase & Co. JPM
And Morgan Stanley MS
Each IPO booked more than $ 1 billion in revenue.

Today, many companies listed on the stock exchange last year are trading below their IPO price. But when investors lost money, many insiders – CEOs, executives, venture capitalists and other primary financial backers – were able to cash in significantly.

There have been some big sellers. Dating-app operator Bumble BMBL
It raised ারে 2.4 billion in its initial public offering last year by selling shares for 43. Most of that money went to the company’s main shareholder, Wall Street Behemoth Blackstone Group, which sold ্ব 2.19 billion worth of Bumble’s stock, according to the securities filing. Shares of Bumble now trade at around 27 27, 37% less than the IPO. Blackstone BX
Declined to comment.

According to Veritadata, insiders sold কোম্প 35.5 billion worth of public company shares in the United States in 2021. Some insiders bought, but they bought only $ 7.6 billion in publicly traded stocks of companies listed on the U.S. exchange last year. Tull, for example, recently bought G 7.25 million in FIGS stock.

“When the market heats up, you tend to get companies looking to take advantage of the foamy market for new offers, and you’ve seen it with the 2021 IPOs and SPACs,” said Ben Silverman, research director at VerityData.

Coinbase, Coupang, Playtika, Robinhood, Honest Co.

Less than a year ago, Baiju Bhat (left) and Vlad Tenev, co-founders of Robinhood Markets, were smiling as they walked Wall Street on Robinhood’s IPO listing day. The stock has since declined 73%.

Getty Images for Robinhood

In April 2021, Coinbase, the operator of the country’s largest cryptocurrency exchange, listed its shares on Nasdaq via a direct listing, evading the traditional IPO process that featured expensive investment-banking fees. “I was excited about the live list,” Coinbase COIN said
At the time, CEO Brian Armstrong said. “I feel that this is more true to the principles of crypto.”

Armstrong said the direct listing process would provide a more accurate market value for Coinbase’s shares, “instead of an estimate” that was set “behind closed doors” and [by] A small number of participants. ”

Another difference with the direct enrollment process was that there were no underwriters who could set up a lock-up ban on internal sales for six months or more. The reference point for the Coinbase IPO was $ 250, but the stock rose to $ 388 on the first day of trading. At this and other levels, Fred Wilson, who sat on the board of Coinbase, pressured his venture company, Union Square Ventures, to unload all its Coinbase stock to 1. 1.8 billion.

In total, Coinbase Insiders unloaded $ 3.5 billion in Coinbase shares from the IPO. According to Veritadata, Coinbase’s biggest seller is Coinbase co-founder Fred Ehrsam, who sold Coinbase stock for $ 492 million; Armstrong, who sold 292 million; And Emily Choi, president of Coinbase, who sold $ 231 million.

BTCUSD with bitcoin price
And with other cryptocurrencies sinking in recent months, Coinbase’s financial performance has taken a serious hit. Its stock has dropped to $ 70, which is 72% below its IPO reference price, and insiders, such as Union Square Ventures, are down 82% from the high level of unloading the stock. Coinbase and Union Square Ventures did not respond to a request for comment.

The role of venture capitalists in the 2021 IPO sales frenzy is significant. In 2016, Masayoshi Sun, billionaire founder and CEO of Japanese holding company SoftBank, announced that Softbank Hot had raised $ 100 billion in venture-capital funds to invest in new technology companies. Coupang CPNG 7 is one of the companies that SoftBank supported.

SoftBank initially invested in Korean online retailers in 2015, but Vision Fund doubled in the company and became the largest shareholder in SoftBank Coupang, a securities filing show. Last year, Kupang decided to list its shares in the United States, conducting a massive IPO on the New York Stock Exchange. Kupang sold shares for 35, raising 4.55 billion.

Six months after the IPO, in September 2021, Softbank began selling its Kupang shares while they were exchanging hands at $ 29.69, according to a securities filing. It sold $ 1.69 billion in Kupang shares last year. This year, as speculative frenzy around technology companies began to break out, Softtank sold another $ 1 billion in Kupang stocks, bringing the total Kupang sales to 2.69 billion.

SoftBank’s stock sales and Coupang’s ongoing financial losses have put the company in a weak position as investors have revalued risky assets this spring. Shares of Coupang recently traded at $ 13.17, down 62% since its IPO.

Softbank is also selling stocks of other companies which has pushed it to the US stock exchanges. In June 2021, Sofi Technologies SOFI,
An online personal-finance company, Social Capital, debuted on Nasdaq after merging with SPAC, Hedosophia, which sold এ 10 worth of stock in its IPO. As Nasdaq rose last year, Sofi made a secondary offer at 21 21.60 per share where SoftBank sold a portion of its holdings for $ 486 million. In total, Sophie’s insiders sold শেয়ার 984 million worth of shares. Sofi’s stock recently traded at $ 7.05. SoftBank did not respond to a request for comment.

Somewhat, however, the boom in speculative technology stocks at the top in 2021 was driven by Robinhood Markets, which operates a trading app that became extremely popular with retail investors during the epidemic. Robinhood conducted its IPO last July, selling its stock at $ 38 and raising 1.89 billion, a large portion of which came from private investors and Robinhood users. Its two founders, Vlad Tenev and Baiju Bhat, each sold স্ট 45.5 million in stock with the offer. Robinhood’s stock is HOOD
Recently changed hands for 10.06, which is 73% less than the IPO price. Through a spokesman for Robinhood, Tenev and Bhatt declined to comment.

Israeli mobile-game maker Pletica Holding PLT
Launching its IPO in January 2021, it raised $ 1.9 billion by selling da 27 shares in Nasdaq. Most of the IPO proceeds went to Platica’s main shareholder, Alpha Frontier, which pocketed a total of $ 1.66 billion from the sale of its Platica shares. Alpha Frontier, owned by a consortium of Chinese investors and controlled by Shanghai billionaire Shi Yuzhou, shows securities filing. Marketwatch could not be reached for comment, and Platica declined to comment. Shares of Platica recently traded at 14.15, down 48% from its IPO price.

Then there are honest companies. The Jessica Alba-founded company went public in May 2021, selling শেয়ার 16 million and raising $ 474 million per share. The IPO proceeds went mostly to El Caterton, which received $ 297 million. Scott Dahanke, co-CEO of a private equity firm, sits on HNST, an honest company.
The board today, honest company stock is changing hands near $ 3.25 El Caterton declined to comment. Before and after the 78% post-IPO sinking of Honest’s stock, Alba never sold a share.

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