Shares before company floats on the stock

[juggers]

I have bought shares in one of my clients companies which is going to float on the stock exchange in the U.S. When I originally bought the shares it was just a punt as I was investing in him rather than just his product which has a Global paten. After doing my do diligence on the investment firm which is taking them to market I bought my shares in the family and friends round of funding before they float and got them at $0.15 a share. The max that could be invested was a 100k, but with that investment came strict guidelines that prohibited me selling shares when they become available to the public which is a safe guard to protect the value of shares.

The tech-
The device pulls data from external and internal household sources and performs automated functions to reduce energy consumption connecting to household appliances, heating/cooling systems and some other cool stuff.
This product has now caught the attention of one the world largest tech firms who would like to do a technical review on it and may look to acquire a big share.

As good as it all sounds I don't expect it to happen as it would be life changing and that sh't never happens to me! I was originally told before all this interest came about that I should expect the share price to hit around a $1 after it floats which is like a 650% increase!!

How likely is the above estimation and has anyone ever been in a similar position where they have bought shares before the company goes public?

[juggers]

desolate said:

You can make a lot of money or it can a damp squib.

I would think the lock out period will be for a limited period after the initial float so check your agreement and see when you can sell and then take advice as to how to sell in the most effective manner.

eg Dump at first opportunity, hold for X years or sell in tranches.

Good luck!

Yes the lock out period is for a set period of time. I have decided that if the shares reach X figure I will cash out, I also understand that stocks and shares can be a bit of a con, so knowing the CEO should keep me in good stead.
I am just a little nervous as I lost a lot of money when a family member invested some money in stocks and shares, I guess I am looking for some reassurance!

Have you ever bought shares before they float?

[juggers]

desolate said:

Yes.

Lost it all as i misread how they would perform.

Was sitting in 6 x times investment that turned to 0 times over a few weeks.

Thanks for filling me with confidence

[juggers]

Doofus said:

Will you be free to sell them on the open market, or is there some kind of Put and Call? I have one of those, and I'm stuck with being fictitiously wealthy..

I am assuming I can sell on the open market once they go public.

bigandclever said:

I was at a place pre-IPO and got options at $6 strike price. They floated at $12, finished the first day at $105 and, after due course, split and maxed out at (an equivalent of) $3134. I miss the dotcom bubble Not that I saw any of that, of course ... I bought and sold up my options and paid off a credit card. Right thing to do at the time; hindsight is a bd though.

As you said hindsight really is a bh.

Edited by juggers on Monday 27th March 20:24

[juggers]

Doofus said:

In your OP you said the opposite.

You miss the post above that mentions it's only for a certain period of time.