So the company that I work for has just put out an IPO to float on the share market. They have offered employee's the opportunity to purchase reserved shares before the offer goes public, up to $10 million worth of shares total. The minimum amount to purchase is $2000 which is probably the amount that I'd be investing. The Indicative Price Range is expected to be between $1.20 – $1.38AUD.
I have read the prospectus, and they are saying that they expect between 4.6% – 5.3% dividend yield which seems pretty decent. I'm just hesitant because I work for them. While I am confidant that the stock isn't going to immediately tank, the fact that each majority stock holders (board members) are reducing their holdings by half using the IPO is worrying me, even though the stocks are held in escrow until EOFY 2016. I've never brought shares before so I want to make sure that I do this right. Are my worries justified, or should I just invest given that I am confident in the companies direction?
Obviously this isn't going to be considered actual financial advice, I'm not going to hold answerer's culpable for any losses. I mean.... I'm asking the internet for financial advice.