What Does Initial Public Offering - IPO Mean?


CMA*CA*CMDM*ast FUND MANAGER*LEGAL ADVISOR

What Does Initial Public Offering - IPO Mean?
The first sale of stock by a private company to the public. IPOs are often issued by smaller, younger companies seeking the capital to expand, but can also be done by large privately owned companies looking to become publicly traded.

In an IPO, the issuer obtains the assistance of an underwriting firm, which helps it determine what type of security to issue (common or preferred), the best offering price and the time to bring it to market.

Also referred to as a "public offering".
 
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IPO MEANS OFFERING OF SHARES BY UNLISTED COMPANY TO THE PUBLIC, BUT WHEN A ALREADY LISTED COMPANY MAKES A PUBLIC OFFER THEN IT IS FPO(FURTHER PUBLIC OFFERING) AND NOT IPO

I HOPE UR DOUBT IS CLEARED


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Dear Friends,

 

First of all the company needs to appoint a merchant banker, domestic legal counse and intermational legal counsel for that.


Very briefly there are following stages in an IPO:

1. Stage 1 - Appointment of Intermediaries

2. Stage 2 - Due Dilligence

3. Stage 3 - Draft Red Herring Prospectus and its filing

4. Stage 4 - SEBI comments over DRHP and Preparation of RHP

5. Stage 5 - Marketing

6. Stage 6 - Issue Phase (Issue opening and closing)

7. Stage 7 - Post Issue Phase  (Allotment)

8. Stage 8 - Listing

regds

Deepak

 
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Founder & Director - Holistic Investment Planners (P) Limited

Factors To Consider Before Investing In IPO’s.

IPO’s or initial public offering is best understood as the first public offering of shares by a private limited company before listing in a stock market. Looking down IPO’s history of success and failure stories, you would be smart to first fully understand the various aspects behind such offerings and makes the right choice to invest or not in IPO’s. It is advisable to understand that investing in IPO’s could prove risky with unfavorable market situations and sentiments and when the fundamentals of the company and industry are weak. It is best to go by facts, avoid being influenced by rumors and have a closer look at the past performances also.

 

http://www.holisticinvestment.in/before-investing-in-ipo

 

Regards

Ramalingam K, MBA, CFP,

Director and Chief Financial Planner,

Holistic Investment Planners

“Best Performing Financial Advisor Award” Winners from CNBC TV18

www.holisticinvestment.in

(Follow us on)

http://www.facebook.com/holisticinvestmentplanners

 
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Accountant

DEFINITION of 'Initial Public Offering - IPO'

The first sale of stock by a private company to the public. IPOs are often issued by smaller, younger companies seeking the capital to expand, but can also be done by large privately owned companies looking to become publicly traded.

In an IPO, the issuer obtains the assistance of an underwriting firm, which helps it determine what type of security to issue (common or preferred), the best offering price and the time to bring it to market.

Also referred to as a "public offering."

INVESTOPEDIA EXPLAINS 'Initial Public Offering - IPO'

IPOs can be a risky investment. For the individual investor, it is tough to predict what the stock will do on its initial day of trading and in the near future because there is often little historical data with which to analyze the company. Also, most IPOs are of companies going through a transitory growth period, which are subject to additional uncertainty regarding their future values.

Embark on the interesting journey from the pre-IPO stage to the final IPO placement in the primary market - Read The Road to Creating an IPO and Interpreting a Company's IPO Prospectus Report.



Read more: http://www.investopedia.com/terms/i/ipo.asp#ixzz3fxICG959 
 

 
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There is no such thing as an "FPO"

 
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Financial Adviser

Follow-On Public Offering refers to a process in which publicly owned companies can make further issue of shares to the public through an offer document. IPO is the first public issue of the company's shares. On the other hand, FPO is the second or third public issue of the shares of the company.

 
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IPO or initial public offer means the company is going public. 

When a privately held company offers its shares for the first time to the public, then it is called Initial public offering (IPO). It is a way for the companies to enter the stock market. (Read more here: What is an Initial Public Offering (IPO)?

I hope it helps. Happy Investing.

 
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