The Pour Over Today - Explaining IPOs

Starting point is 00:00:00 Hey there, this is Joe. Happy Saturday. SpaceX IPOed last week, and if you're hearing that and thinking, you keep saying that word, but what does it mean? You're in good company. We're here to break it down for anyone who isn't a finance bro. Let's take a walk down Wall Street. But first, here's your quote of the day.

Starting point is 00:00:23 God's goodness is the root of all goodness, and our goodness, if we have any, springs out of his goodness. William Tyndale. So what is an IPO? IPO stands for initial public offering. It's when a company opens itself up to everyday investors selling shares on the stock market for the first time. Want to know more about how the stock market works? Check out our episode from April 25th on stocks. A pre-IPO company is considered privately owned, which is why you'll often hear people refer to IPOing as going public. You may be wondering, why do companies go public?

Starting point is 00:01:11 Simple answer? Cash money. Think about it this way. Before a company goes public, it's being funded by private investors, family, friends, founders, venture capitalists, etc. And it's a lot easier to sell a piece of your company to a million buyers for a small price than to ask one investor to write a $500 million check. The capital a company gets from going public can pay off debts and fund expansions.

Starting point is 00:01:39 There's also a street cred aspect. Companies that go public have passed Wall Street scrutiny. It's good for branding and attracting customers and talent. Now for the real question. How does a company go public? It's quite the journey. The process starts when a company hires an investment bank, think Goldman Sachs or Morgan Stanley, to be their IPO,

Starting point is 00:02:02 Next comes an S-1 filing with the SEC that forces the company to lay everything bare. Finances, risks, lawsuits, ugly quarters, all of it becomes public record. It's the corporate equivalent of having your diary posted online. From there, the company hits the road. Executives go on tour pitching to the big money players, mutual funds, pension funds, institutional investors, and what's called a roadshow. Think of it as a very expensive, very high-stakes sales trip. The bank uses that information to gauge what investor interest would be

Starting point is 00:02:41 and set an initial share price. Then, on IPO day, the company gets a ticker symbol, shares hit the market, and anyone with a brokerage account can buy a slice of the company pie. Hey, it's Zan from the pourover. I've been making a purposeful effort to eat more seafood because I know it's packed with nutrients and I feel better when I do. But finding quality seafood where I live is a feat.

Starting point is 00:03:07 That's why I started ordering from Wild Alaskin. They deliver 100% wild-caught, never-farmed seafood like coho salmon and Pacific halibut, straight to my door. It comes perfectly portioned and frozen right off the boat, locking in taste, texture, and nutrients like Omega-3s, so it's both delicious and super easy to prep a quick, nutritious dinner for my family. My first box from Wild Alaskan Company definitely made me realize not all fish is the same.

Starting point is 00:03:34 Get seafood you can trust. Go to wildalaskan.com slash TPO for $35 off your first box of premium wild caught seafood. That's wildalaskan.com slash TPO for $35 off your first order. The Bible warns us over and over about the danger of feeding an insatiable desire for wealth. Fight that greed by exercising your generosity muscles. making a habit of an open-handed approach to all God's gifts. 1 Chronicles 29, verse 11 and verse 14 says, "'Yours Lord is the greatness and the power and the glory and the splendor and the majesty,

Starting point is 00:04:27 for everything in the heavens and on earth belongs to you. But who am I and who are my people that we should be able to give as generously as this? For everything comes from you, and we have given you only what comes from your own hand. Before we go today, we want to take a moment to pray a prayer for living counterculturally. Father in heaven, your upside-down kingdom of self-sacrifice and weakness is foolishness to the world, but to us it is wisdom and life.

Starting point is 00:05:00 When the world seeks to slowly neutralize Christ's aroma, rub off on us the sweet smell of your spirit. Equip us to be faithful ambassadors of your kingdom, bringing your culture of hope and customs of love to the broken places in our earthly outposts. Train us to celebrate the good in our communities and to cultivate growth in all places of our exile so we may bless the world you love.

Starting point is 00:05:25 Amen. Want to bring more hard headlines to God and prayer? Join us in our Saturday afternoon newsletter, Praying the News. Subscribe at the link in the show notes. Fly to space? Check. Walk on the moon?

Starting point is 00:05:52 Check, give his life to Jesus? That took him a little longer. Astronaut Charlie Duke was the voice in mission control when Neil Armstrong and Buzz Aldrin landed on the moon. He helped navigate the Apollo 13 crisis, and during Apollo 16, he became a moonwalker himself, spending three full days on the lunar surface. Today, he's one of only four living moonwalkers.

Starting point is 00:06:17 But after reaching the heavens, life back on Earth felt empty. His marriage was crumbling, his kids were hurting, success hadn't fixed what mattered most. Then came a life-changing encounter with Jesus. Here Charlie's powerful story on the Compelled podcast. In the episode, My Journey to the Moon, listen wherever you get podcasts or at compelledpodcast.com.

The Pour Over Today - Explaining IPOs

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