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Taking a company public is daunting under normal circumstances. Doing it when the market is in a freefall? That’s another level entirely. Yet, Bill Koefoed, CFO of OneStream Software, led his team through their IPO during “the worst day on the Nasdaq in two and a half years.”
Despite the chaos, OneStream’s stock rose 34% on its debut, trading up from $20 to $27 per share. How did they achieve this remarkable success against a series of bad hands? Here are the key strategies Bill shared during his Run the Numbers interview.
1. Don’t Wait for the Perfect Market Conditions
After closing their 2023 numbers in February, OneStream began preparing for their IPO. But by spring, the markets were rife with uncertainty: Salesforce and Workday reported weak results, and broader tech stocks were slumping. Instead of retreating, OneStream doubled down on preparation.
Bill shared their mindset:
“You make a couple of decisions. One is, do you flip public? We felt like we were well-prepared and decided to go for it.”
Their roadshow kicked off right after a turbulent weekend of political and market news, capped by Friday’s CrowdStrike incident, which disrupted travel.
“We started our roadshow the Monday after Donald Trump was shot. And during our roadshow on that Friday the CrowdStrike incident happened. We couldn't get into our hotel room because the electronic door locks didn't work.
And then, of course, Joe Biden decided not to run for president again that weekend.”
Lesson: No market is perfect. Timing an IPO is as much about preparation as it is about courage. If your fundamentals are strong, the right investors will see past market noise.
2. Build Relationships Before You Need Them
OneStream invested years into building its reputation with potential investors. This included quarterly “momentum” press releases and proactive meetings with funds like T. Rowe Price, which ultimately became an anchor investor.
“T. Rowe generally never does cover, but they committed to 15% of our IPO because they liked our story and saw our progress over time.”
Their careful selection of investors paid off: their IPO was 20x oversubscribed.
Lesson: Show them your company’s progress consistently and transparently, even when you’re years away from going public.
3. Master the Art of IPO Pricing
IPO pricing is a delicate balance. Bill described the decision to set their range at $17 to $19 and then price at $20.
“We could have priced higher, but we wanted to ensure we attracted patient money—investors who would stay with us for the long haul.”
On the day of the IPO, Bill waited anxiously as Nasdaq officials and bankers signaled when they’d open trading. When it finally started at $26, emotions ran high.
Lesson: Pricing isn’t just about maximizing proceeds; it’s about setting the tone for long-term success. A controlled first-day “pop” builds goodwill with investors and reflects confidence in your business fundamentals.
4. Prepare for Chaos, and Stay Agile
Bill’s roadshow anecdotes paint a picture of organized chaos: delayed flights, last-minute changes to the prospectus, and pizza ordered from the tarmac. Through it all, his team stayed focused.
“You make decisions with limited information under tight deadlines. You just have to stay calm and adapt.”
Lesson: Expect the unexpected. A strong team, trusted advisors, and a sense of humor can help you navigate the inevitable curveballs.
5. Celebrate Your Wins
For Bill, the most poignant moment came when their IPO officially opened for trading. After months of preparation and a grueling roadshow, the stock’s rise on a bloody market was validation of their hard work.
“The day that we went public was the worst day on the NASDAQ in two and a half years. So it was a roller coaster, but we felt well prepared and obviously, we had a good reception at the end of the day.
“It’s still emotional. Everything we did, all the investor meetings, the pricing— it all came together in that moment.”
Lesson: The IPO is just the beginning. But taking time to recognize the milestone reinforces your team’s resilience and sets a positive tone for the next chapter.
Listen to the full IPO journey here:
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