I’m afraid the idea of an IPO is pure fantasy (as far as I am aware).

But the idea is tantalising to me, which gets me to wondering - am I the only one, or are there others that would love to be a shareholder in this British success story if the opportunity came along?

Sorry for the daft question, but what’s an IPO?

iain wrote: ↑Sun Nov 10, 2024 12:27 pm Sorry for the daft question, but what’s an IPO?

Initial Public Offering. (Stock flotation/release). At least friend Google says so.

iain wrote: ↑Sun Nov 10, 2024 12:27 pm Sorry for the daft question, but what’s an IPO?

Not a daft question, the below summary from the internet sums it up far better than I ever could:

When a private company first sells shares of stock to the public, this process is known as an initial public offering (IPO). In essence, an IPO means that a company's ownership is transitioning from private ownership to public ownership. For that reason, the IPO process is sometimes referred to as "going public."

Ps. I love Ian’s law. Though I’m not going to mention my Bel canto… doh!

Woody wrote: ↑Sun Nov 10, 2024 11:59 am I’m afraid the idea of an IPO is pure fantasy (as far as I am aware).

But the idea is tantalising to me, which gets me to wondering - am I the only one, or are there others that would love to be a shareholder in this British success story if the opportunity came along?

I wasn’t aware CW were considering an IPO, has this been reported anywhere or are you just posing a hypothetical question?

I wouldn’t say it is fantasy in terms of a successful venture capital backed company looking for investment to further expand or an exit for existing investors, however I’m not sure if the company has sufficient critical mass to go to a publicly quoted stock exchange at present.

timepieces_and_bags wrote: ↑Sun Nov 10, 2024 1:32 pm ^^^ Just a hypothetical question I believe.

I would probably invest.

Though it reminds me of Mrs TB who owns a couple of shares in a well-known fashion/handbag company. And then every time she buys another one of their bags she insists it's economically smart because she's doing her bit to help raise the stock price...!

Haha - it sounds like Mrs TB and I have a similar way of thinking. It would certainly make me feel better about handing over more cash on the Bel Canto classic.

timepieces_and_bags wrote: ↑Sun Nov 10, 2024 1:32 pm ^^^ Just a hypothetical question I believe.

I would probably invest.

Though it reminds me of Mrs TB who owns a couple of shares in a well-known fashion/handbag company. And then every time she buys another one of their bags she insists it's economically smart because she's doing her bit to help raise the stock price...!

So if CW list their shares, we can invest and follow the same logic, right?!

So if CW list their shares, we can invest and follow the same logic, right?!

It could be very worthwhile: I don't know if it's still the case, but many companies used to offer benefits to shareholders. Often a useful annual discount that could be worth more than the purchase price of a minimal amount of shares. Still, as the question is idle speculation, not much point going there.

It's an interesting idea. CW would need good reason for an IPO - growth, investment for development or simply existing shareholders wanting to see some returns but retain ownership.

I can't imagine an enormous cash injection would change much for CW - they have a very successful development pipeline and already have the vertical integration many brands could only wish for. Their success with a fixed (and relatively low when compared to industry) cost to sale price multiplier speaks volumes for their success so far.

In a world where the boutique brands are owned by conglomerates, I think CW should remain a private entity for as long as it can.

That said, given the recent financials, I wouldn't snub an opportunity to invest. While a lot of the recent models aren't to my particular tastes, as a watch business it's in fine form.

The fine print on any financial advertisement says something like: Past performance is not a guarantee of future performance. One year of good profitability does not mean that the next year will be good too. It would be interesting to see what the company is valued at during an IPO and the degree of disclosure would also be fascinating. Would I take a punt? Depends on the price but I doubt any dividends from these shares would allow me to retire early.

No, because...

The ones that are truly worth it, normal people cannot get into until it is public and overvalued so then it is no longer worth it. That just leaves the ones that are a real gamble and rarely make it so I am not willing to waste my money on those.

albionphoto wrote: ↑Mon Nov 11, 2024 12:44 pm Depends on the price but I doubt any dividends from these shares would allow me to retire early.

Exactly. IPOs are a fools errand unless you work for the company offering the IPO or the investment bank taking the company public.

Investing in low cost mutual funds for more than 30 years (and never selling through any downturn) allowed me and my wife to retire very early.

Just a thought. The CWL IPO might be Mike and Peter's exit strategy. One possibility anyway.

JAFO wrote: ↑Mon Nov 11, 2024 3:38 pm Just a thought. The CWL IPO might be Mike and Peter's exit strategy. One possibility anyway.

Well maybe, except they don’t currently have a controlling interest in CW.