I still own shares of $SAM from the IPO.
It was 1995, I was in grad school and the company asked customers to send in a check for 495$ along with a proof of purchase of Samual Adams product for a chance to own 33 shares at 15/share.
Then, those who submitted were chosen at random to get shares. I did this and got shares as did my sister Ellen.
I now have an (almost) 8 bagger over 16 years and have always maintained an affinity for the product not only because they make quality beer but because I always felt like an owner and a part of what they were doing even though it was only a very small position.
Perhaps, I should sell it here but I likely never will.
More consumer product companies should definitely do this – give their customers first crack at owning shares.
First off its fair. Second, it would probably save a ton of money in investment banking fees. Third, it would add excitement and attention to the IPO. And fourth, it fosters affinity over time as users feel like they are really a part of the company’s success.
Social media companies should definitely do it. Users would go bizonkers for ($FBOOK) and Twitter ($TWIT) shares and it would be fun to talk about on their respective sites as the date approached and afterwards.
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