How to Buy the Doximity IPO

I’m gonna do it— I’m gonna buy the Doximity stock IPO.

After hemming and hawing, I finally figured, “WTF, why not?”  (Always a sound investment decision strategy, lol.)  In addition to potential financial profit, I thought this process of purchasing an IPO would be a fun way to take you through the process of buying a stock, watching it perform, and generally getting comfortable understanding how stocks work.  My goal isn’t to make you a trader, my goal is to help you gain a solid comfort level with understanding the market.  This will make you a confident investor.  (There’s a difference between trading and investing in the stock market, and you can check out my recent IG & FB posts for that.) I’m going to keep you updated on how the Doximity stock does once it goes on sale to the public, and all the way up until I sell it.

There are two “How-to” videos on the Money Med School YouTube channel.  (Part 1 and Part 2).  These both outline the steps of how to sign up for the IPO and a walk through of how to do each step.

Links here:

How to Buy Doximity IPO Part 1

How to Buy Doximity IPO Part 2

So, onto Doximity…

Doximity stock will be traded on the NYSE, under the ticker symbol “DOCS”.

Doximity would like to raise $536 million in capital by selling stock. The currently proposed price per share is $20-23. The actual price will be determined by Doximity and the underwriting banks on “Pricing Night” between 6 PM – 12 AM EST.  At the moment, Pricing Night is June 23.  All dates are subject to change!  You gotta pay attention— look for email updates from Fidelity for changes. 

It’s always key to know where the money is coming from—in other words, how the seller is motivated.  In this case, the banks that underwrite the IPO are highly motivated to sell all of the IPO offered shares.  Why? Because if the IPO sells out, that creates a buzz, a desire, with buyers, also known as FOMO, and the buyers will want to buy when the stock begins trading publicly.  This makes the IPO a success.  An IPO is a success if the IPO is “oversubscribed” —meaning that more people want the IPO than IPO shares are available.

Another way an IPO is considered successful is if the company’s market cap is equal or greater to the cap of its competitors within a month of the IPO. (Market cap = the number of shares for sale x the stock price).

The steps of the process are:

Part 1:

1. You received an email from Doximity on June 2, with an invitation to participate in the IPO.  This was entitled, “Doximity’s Proposed IPO: Invitation to Reserved Share Program Pre-Registration”. The email asks you to declare your interest in participating, by pre-registering with Doximity.
2. Pre-register with Doximity by June 9th (click the button at the end of the email)
3. Once you pre-register, you’ll get an email from Fidelity: “Doximity Reserved Share Program-Account Opening Invitation”.  You need a brokerage account with Fidelity to purchase the shares.
4. Open a brokerage account with Fidelity (if you already have one, link this account with the Reserved Share Program)
5. Fund your new account (put money in there to cover your purchase)

Part 2:

1. Once you’ve got your new account open, you’ll receive an email from Fidelity confirming your account and providing the next set of instructions.  This is entitled “Invitation to Participate”. Click on the link in this email to go to the Fidelity Doximity Reserved Share Program website. ***If you don’t receive this email, CALL Fidelity, because they’ve had a few technical difficulties.  You can’t proceed without this email.***
2. Read the Prospectus—this is the 222 page document that outlines Doximity’s proposal to the SEC for becoming publicly traded.  It may sound like a lot to read, but if you’re ever going to invest in anything, you must fully understand it.  This document is actually quite juicy—it’s got all the company’s financial info, the executives’ compensation, whether the company is being sued, and most importantly, a list of all the foreseeable risks of investing in this company.  It’s basically an informed consent.  In order for a company to go public, they need to demonstrate millions (bare minimum) in profits, so the company is already doing well to be approved by the SEC to sell shares.  That said, you still gotta read this.
3. Complete the FINRA Rule 5130 Qualifying Questions—these are questions that rule out a conflict of interest.
4. Enter your Indication of Interest (IOI)—you tell them how many shares you  want to buy.  Even though our investment is limited to $5000, and the anticipated share price is $20-23, the website still lets you enter up to 1000 shares.  This is a declaration of interest, not a purchase, and not a binding commitment. 
5. Stay tuned for PRICING NIGHT, June 23rd!  Between 6 PM and 12 AM EST the company & underwriters will determine the IPO price.  Once that’s announced, Fidelity will send you an email, and you gotta respond by midnight or you’ll turn into a pumpkin.  Actually, if you don’t respond by midnight, your shares will turn into pumpkins because they’ll be lost—if you don’t respond, this is considered a cancellation of your IOI.
6. On the Day of Settlement, June 28th, at 9 AM, Fidelity will let you know how many shares you received. Now, it’s likely that you’ll get all of them (up to $5000 worth) because it’s in the banks’ best interest to sell out the IPO, but there is the possibility that you won’t get all the ones you asked for.
7. Pay for the shares within 48 hrs of receipt (June 30 at 9 AM). 

SUMMARY OF DEADLINES

June 9: Pre-register with Doximity

June 21 by 4 PM EST: Open your Fidelity brokerage account, or designate a current account to the Reserved Share Program.

June 22: Enter your Indication of Interest (IOI) by 4 PM EST.  Tell Fidelity how many shares you want.

June 23: PRICING NIGHT: confirm your IOI between 6 PM-12 AM EST (look for an email from Fidelity to let you know when the price has been announced)

June 28: Day of Settlement: You’ll get an email from Fidelity—here’s how many shares you got.

June 30: Pay up by 9 AM (within 48 hrs of settlement).  If you want to sell your stock before then, you have to have paid for it already.

This information is for educational purposes only, and is NOT financial advice.  It’s just for fun and learning. You must make your own investment decisions yourself, based on your own research.  I have no relationship with Doximity or any of the financial institutions underwriting or administrating the Doximity IPO.