Agenda

1
Agenda

• Initial Public Offerings the Market
• IPO Process
• The Pitch

2
Initial Public Offerings

• Why do companies go public?
• What are the benefits and drawbacks of being a
  public company?
• Process
• Underwriter syndicate decision
• Legal documents
• The Roadshow
• Pricing
• Share Issuance

3
Who does what?
4
Roadshow
5
Offering Summary

• Shares Offered 1,875,000 Primary
• 6,275,000 Secondary
• 8,150,000
• Greenshoe 1,222,500 (15)
• Anticipated Pricing Week of February 21, 2000
• NASDAQ Symbol ENTU
• Underwriters Goldman, Sachs Co.
• Bear, Stearns Co., Inc.
• Donaldson, Lufkin Jenrette
• SoundView Technology Group

6
Friday Feb 4
New York City, NY
1145 am Goldman Sachs, DLJ, Soundview
200 pm Bear Stearns
Return home for Saturday
ENTU close 56.81
7
Monday Feb 7
Frankfurt, Amsterdam, The Hague
830 am Breakfast meeting, 8 investment firms
1030 am Fly to Amsterdam
100 pm ABN Amro (Amsterdam)
200 pm Drive to The Hague
300 pm ING Investment Mgmt. (The Hague)
400 pm Drive to Rotterdam
500 pm Robeco Group (Rotterdam)
Fly to London
ENTU close 58.63
8
Tuesday Feb 8
London, England
800 am Atlantic Capital
930 am GLG Partners
1045 am Goldman Sachs (3 investment firms)
1230 pm Mercury Asset Mgmt
215 pm Foreign Colonial Mgmt
330 pm Schroeder Mgmt
ENTU close 63.81
9
Wednesday Feb 9
900 am Fly London to Palm Springs CA
ENTU close 70.63
10
Thursday Feb 10
Palm Springs CA
815 am Dresdner RCM Global Investors
900 am Munder Capital
1015 am Kingdon Capital
1105 am Government of Singapore
1150 am Bowman Capital
1240 pm Galleon Asset Mgmt
205 pm Pequot Capital
340 pm Tech Conference Presentation
Fly to Houston
ENTU close 72.50
11
Friday Feb 11
Houston TX
1130 am Van Kampen Investments
130 pm AIM Advisors
Home for weekend
ENTU close 65.31
12
Monday Feb 14
Boston MA
730 am Scudder Kemper
845 am State Street Research Mgmt
1000 am Fidelity Management Research
1115 am Sirios Capital Mgmt.
1215 pm Luncheon, 14 firms
200 pm Loomis Sayles
315 pm Putnam Investments
430 pm Vinik Asset Mgmt
515 pm Cadence Capital Mgmt / Mass. Financial
Fly to New York
ENTU close 69.00
13
Tuesday Feb 15
New York City NY
730 am Westway Capital
915 am J W Siegelman
1030 am Credit Suisse Asset Mgmt
1200 pm Luncheon, 26 firms attending
200 pm Moore Capital
315 pm Alliance Capital Mgmt
445 pm Dean Witter Asset Mgmt
Train to Philadelphia
ENTU close 72.13
14
Wednesday Feb 16
Philadelphia PA, Baltimore MD
830 am Morgan Stanley Dean Witter Investment
945 am Turner Investment Partners
1100 am Pilgrim Baxter Associates
1230 pm Delaware Investment Mgmt
200 pm Blackrock Inc.
430 pm T-Rowe Price
Fly to San Francisco
ENTU close 78.88
15
Thursday Feb 17
San Franscisco CA
700 am Palantir Capital
830 am Columbia Mgmt
945 am Standard Pacific Capital
1100 am RS Investment Mgmt
1215 pm Dresdner RCM Global Investments
200 pm Pequot Capital
330 pm Franklin Research (San Mateo)
Fly to Kansas City
ENTU close 92.25
16
Friday Feb 18
Kansas City
715 am Waddell Reed
900 am American Century
Home for weekend
ENTU close 89.94
17
Tuesday Feb 22
Minneapolis MN, Milwaukee WI, Madison WI
700 am First American, Lutheran Brotherhood
730 am Breakfast, 6 investment firms
900 am American Express Financial
1030 am Fly to Milwaukee
1215 pm Luncheon, 6 investment firms
200 pm Strong Capital Mgmt
315 pm Fly to Madison
430 pm State of Wisconsin Investment Board
Fly to Denver
ENTU close 89.84
18
Wednesday Feb 23
Denver CO
730 am Janus Capital Corp.
915 am Invesco Trust
1100 am Marsico Capital Mgmt.
Fly Home
ENTU close 85.50
19
Thursday Feb 24
Entrust Follow-On Offering
Share Price 82.00 Net Price 78.41
Capital Raised 701,537,406 To Nortel
527,133,179 To Entrust 162,642,726 In Top 10
for Internet follow-on offerings!
20
The Book
21
Post-IPO Existence

• Existence as a public company
• Internal challenges
• External challenges

22
Internal Challenges

• Changing corporate culture
• Who can see what information? When?
• Managing expectations feelings of employees
• Who can sell or buy shares? When?
• Meeting growing financial targets every quarter
• Preparing for quarterly conference calls
• Managing the hard costs of being public

23
External Challenges

• Managing investors
• Institutional
• Being visible on a regular basis
• Watching who is buying selling
• Some investors dont want you to succeed
• Individual
• Most individual investors do not understand the
  market or the constraints on public companies

24

• My name is Daniel D. Boman and I am a shareholder
  in your company. I am very excited to see the
  growth that the company has made. ... I have
  followed both Entrust and Verisign for quite a
  sometime. During that time Verisign has had at
  least 2 stock splits or more. To the best of my
  knowledge Entrust has had none. Is there a reason
  for this ? Do you think that maybe something that
  will happen down the road?
• I realize that this kind of information isn't
  public. But maybe you could shed some insight on
  what Entrust has in store.

25

• Email na_at_less.com
• Subject HELP!!!
• Comments IR/PR we need some help here. Get some
  damn press releases out or this stock will be
  trading in the 30's soon.

26
Top Investor Concerns

• Linearity Predictability
• Visibility
• Market size and accessibility
• Revenue growth
• Customer growth
• Compression of sales cycles
• Barriers to competition
• As few moving parts as possible (i.e., simpler
  is better)

27
The Pitch

• A Structured Approach
• for Approaching Investors