We're rolling out an espp here at Qualtrics. What is standard in the space? If we have a 15% cut and a 1yr look back, does that mean that I'll likely be able to buy stock at the IPO price for the next year? Would live some thoughts on the value from folks who have been through an IPO with espp's
Thanks. Big question here is: Say we IPO at $15/share then Bump on day one to $20/share. Will I be able to buy shares at $15*.85, or $20*.85?
The look back price is usually based on closing price. I.E. Closing price on each day of last 365 days. In your specific scenario it’d be the $20.
Depends on the company’s policy
Looks like the pre IPO pricing $18-$21 range is highly overpriced
The way that ESPP works is: You get the opportunity to use up to a certain percentage (or amount) of your income to buy company stock at a discount (10% is common and can be as high as 15%). You have a short window within which to exercise (usually 5 days starting from the last purchase point). after the selection window ends you have to wait until the purchase day (in some companies purchases happen twice a year i.e. spaced out 6 months). Purchasing stock can take about 5-10 days after which you can decide to sell the stock to get your money back plus the inverted discount