The IPO wave I predicted in early January is here…
And just last week, a federal agency announced a new rule that will send it into overdrive.
I smell a huge opportunity. But before I get to this big news, let me back up…
An IPO – or initial public offering – is when a private company lists its shares on a public exchange.
I’ve been watching the IPO market closely since 2019. And in January, I told you we’d see a mega wave of companies going public this year.
In fact, I believe it’ll rival the wave of IPOs we saw during the tech boom of the 1990s.
We saw companies like Amazon, eBay, and Nvidia go public. Today, they’re some of the biggest names in the world.
So far this year, we’ve seen $116 billion raised by private companies going public, which includes special purpose acquisition companies (SPACs) and IPOs. And that’s despite the IPO market shutdown earlier this year due to the COVID-19 outbreak.
With the nationwide lockdowns now over, we’re seeing a stampede of companies going public.
Last week, five tech companies filed notices to go public: Unity, Sumo Logic, Asana, JFrog and Snowflake. Shortly before that, data analytics titan Palantir said it’d go public this year… with a valuation of about $26 billion.
And soon, we could see the largest IPO in history. The payment arm of Chinese e-commerce giant Alibaba plans to go public with a target valuation of more than $225 billion.
With all this bullish news, it’s no wonder the IPO market is up over 50% year-to-date. Meanwhile, the S&P 500 is up about 10% on the year.
But this is just the beginning. A recent announcement by the Securities and Exchange Commission (SEC) will send this red-hot trend into absolute overdrive… And it could make you a small fortune.
Everyone Is Getting Rich From IPOs Except You
Last Wednesday, the SEC approved a proposal by the New York Stock Exchange to allow companies to raise capital through direct listings on exchanges. The Nasdaq reportedly asked the SEC for a similar change to its rules.
I can’t tell you how bullish this news is…
Now, I won’t get into all the technicalities. But the rule change allows private companies to list on public exchanges without taking the traditional, cumbersome, and expensive IPO route.
It’s another option for private companies to list shares right away… and it’s going to create a wave of brand-new IPO millionaires.
But don’t just take my word for it…
Prominent venture capitalists (VCs) like Bill Gurley and Peter Thiel are absolutely giddy about the ruling. (After the SEC made its announcement, Gurley simply tweeted: “YES!”)
And it’s no surprise why…
It gives them another way to offload their private shares onto the public for massive gains…
The Biggest Scam Going
Here’s what I mean by that…
You see, for years insiders have dumped their cheap shares on the IPO market. Now, in order to get you to buy their shares, they price the deal in such a way that you can make double, triple… and sometimes even quadruple returns.
While you’re popping champagne at your easy-money windfall, the insiders are laughing their butts off on the yacht you just bought for them.
Let me explain exactly what’s happening…
Wall Street has conditioned you to think making a double or triple in a day is a lot. It isn’t.
Take Uber, for instance.…
Gurley’s VC firm, Benchmark, got private shares in Uber for pennies. And made a 64,200% gain when Uber went public. Retail investors who bought Uber on IPO day haven’t made a dime yet.
Facebook is another example…
Retail investors are up 665% since IPO day. That’d turn $250 into $1,912.
But Thiel had stock in Facebook before it went public. Those are called pre-IPO shares. The day Facebook went public, he made 200,000%. Enough to turn $250 into more than $500,000.
That’s the difference between buying the IPO and buying pre-IPO. If you want to get rich from IPOs, you have to buy shares before they are public.
Here’s How to Get Rich From the IPO Boom
So you can see why guys like Gurley and Thiel are doing somersaults. They have a new way to get you to pay for their next jet.
Remember, if you think a couple of IPO double- or triple-digit winners will make you wealthy in the long term, you’re wrong.
They’re just table scraps Wall Street throws your way so they can offload stock with massive gains onto you – and have you feeling like you got a great deal.
If you really want to be set for life, you need to buy private companies before they go public. It’s how Thiel and Gurley made their billions.
And thanks to another rule change by the SEC, ordinary investors like you can now participate in what was once Wall Street’s exclusive playground.
I’m running out of space… so I can’t go into details right now.
But I’ve put together a video workshop to show individual investors how they can profit from private markets. You can go here to sign up for it.
I created the workshop to prepare you for my first-ever Set for Life Summit on September 9 at 8 p.m.
During the summit, I’ll show you how one pre-IPO deal in what Forbes calls the “most profitable sector” in America can have you “set for life.”
Friends, if you want a legitimate shot at being set for life, you need to at least hear what I have to say.
The only cost to attend is an open mind. If you can come with an open mind, what I’ll reveal on September 9 could help you fund a retirement nest egg in a single day.
Let the Game Come to You!
Editor, Palm Beach Daily