Type of securities offering in which a private company becomes a public company
"IPO" redirects here. For other uses, see IPO (disambiguation).
An initial public offering (IPO) or stock launch is a public offering in which shares of a company are sold to institutional investors[1] and usually also to retail (individual) investors.[2] An IPO is typically underwritten by one or more investment banks, who also arrange for the shares to be listed on one or more stock exchanges. Through this process, colloquially known as floating, or going public, a privately held company is transformed into a public company. Initial public offerings can be used to raise new equity capital for companies, to monetize the investments of private shareholders such as company founders or private equity investors, and to enable easy trading of existing holdings or future capital raising by becoming publicly traded.
After the IPO, shares are traded freely in the open market at what is known as the free float. Stock exchanges stipulate a minimum free float both in absolute terms (the total value as determined by the share price multiplied by the number of shares sold to the public) and as a proportion of the total share capital (i.e., the number of shares sold to the public divided by the total shares outstanding). Although IPO offers many benefits, there are also significant costs involved, chiefly those associated with the process such as banking and legal fees, and the ongoing requirement to disclose important and sometimes sensitive information.
Details of the proposed offering are disclosed to potential purchasers in the form of a lengthy document known as a prospectus. Most companies undertake an IPO with the assistance of an investment banking firm acting in the capacity of an underwriter. Underwriters provide several services, including help with correctly assessing the value of shares (share price) and establishing a public market for shares (initial sale). Alternative methods such as the Dutch auction have also been explored and applied for several IPOs.
^Note: the price the company receives from the institutional investors is the IPO price
^Hirst, Scott; Kastiel, Kobi (1 May 2019). "Corporate Governance by Index Exclusion". Boston University Law Review. 99 (3): 1229.
and 28 Related for: Initial public offering information
An initialpublicoffering (IPO) or stock launch is a publicoffering in which shares of a company are sold to institutional investors and usually also...
The technology company Facebook, Inc., held its initialpublicoffering (IPO) on Friday, May 18, 2012. The IPO was one of the biggest in technology and...
publicoffering and they vary according to jurisdiction. The services of an underwriter are often used to conduct a publicoffering. Initialpublic offering...
An Initial exchange offering (IEO) is the cryptocurrency exchange equivalent to a stock launch or Initialpublicoffering (IPO). An IEO is the process...
became the first Indian SaaS company to be listed on Nasdaq. In its initialpublicoffering, Freshworks raised $1.03 billion following earlier funding rounds...
Star Health Insurance launched its ₹7,249 crore (US$910 million) initialpublicoffering (IPO) in December 2021. After the issue was undersubscribed, it...
anchor investors ahead of its initialpublicoffering in May 2022. In May 2022, Delhivery launched its initialpublicoffering (IPO) of ₹5,235 crore (US$660 million)...
An initial coin offering (ICO) or initial currency offering is a type of funding using cryptocurrencies. It is often a form of crowdfunding, although a...
(PIPE). It allows companies an alternative to an initialpublicoffering (IPO) as a means of going public while raising capital. There are two parts that...
third-largest lender by assets. ABC went public in mid-2010, fetching the world's biggest ever initialpublicoffering (IPO) at the time, since overtaken by...
Employment and Economic Development. SkyWater Technology filed an initialpublicoffering with the U.S. Securities and Exchange Commission in March 2021...
DEWA has planned to float 18 percent of its issued share capital as publicoffering listed on the Dubai Financial Market (DFM), the IPO is estimated to...
Private Ltd (ACIPL). On 20 January 2021, Indigo Paints launched its initialpublicoffering (IPO) of about 1170 crores; the price band was fixed at ₹1,488-1...
investment opportunity directly to the public. A DPO is similar to an initialpublicoffering (IPO) in that securities, such as stock or debt, are sold to investors...
closed on 3 May, by which the initialpublicoffering was subscribed 4.83 times. This was the second InvIT initialpublicoffering in the country. Following...
would become Primerica was founded in 1981. Primerica had its initialpublicoffering in 2010. Primerica's headquarters are located in Duluth, Georgia...
dimensions. In March 2021, Treace announced its intent to launch an initialpublicoffering. Trading on the Nasdaq under the ticker symbol “TMCI”, Treace opened...
votes. On 26 March 2019, Bitmain's application for a Hong Kong initialpublicoffering lapsed, six months after it was filed, as investors were reportedly...
newly created companies were privately held but held initialpublicoffering to become publicly traded company or to be acquired by another company if...
with the Securities and Exchange Commission in preparation for an initialpublicoffering (IPO). On December 12, 2020, it was reported that Affirm had postponed...
as Amplify Snack Brands. Amplify Snack Brands went public in 2015 with an initialpublicoffering of $18 per share. That year, the company's sales were...
a decade in Pakistan. The initialpublicoffering (IPO) of BankIslami received overwhelming response from the general public as the applications received...
Government of India made an initialpublicoffering (IPO) of 10% of the equity shares of CIL (631.6 million equity shares) to public at an offer price of ₹245...
federal court against Facebook weeks before the scheduled Facebook initialpublicoffering. In its court filing, Yahoo! said that Facebook had infringed on...
Angeles region. On September 21, 2016, The Trade Desk became a public company with an $18 offering price. The company's opening day was reported as a "vote...
million. Reddit's initialpublicoffering opened on March 20, 2024, at $34 per share and a $6.4 billion valuation. They went public the next day on the...
Blackstone Group invested $250 million in 2018. The company had its initialpublicoffering in June 2021; it is traded on NASDAQ as Nasdaq: TASK. Approximately...
Global Information