How does news about a company spread during the pre-ipo quiet period?
November 20, 2011 7:20 PM Subscribe
How do people get information about a company during its pre-ipo quiet period?
posted by alms to work & money (4 answers total)
A friend owns some very early (friends & family) shares in a biotech startup. The company has subsequently been quite successful and filed its S-1 in July. Since then there have been a couple of amendments to the S-1 but no other news.
This company isn't a Groupon or Zynga or other famous high-flier. Searching Google News yields basically nothing. Is there any way to find out anything about what's happening? It's not clear when or even whether the IPO will actually happen. My friend called the shareholder relations person at the company and was told that because of the quiet period they couldn't tell him anything: no timeline, nothing.
But somehow, news about pre-ipo companies does get out. Is there some formal process for educating potential investors that happens during the quiet period but is completely hidden from the public? Is there any way to find out what is happening?
I'm curious because I think of myself as an educated investor, but when my friend asked me about this I came up blank. Searching for "quiet period" doesn't yield much help.