What is an IPO

If a startup turned out to be in demand and relevant, then sooner or later funds will be required for its further development. As an option, consideration of borrowed funds or the issuance of bonds, promissory notes is suitable. However, the most optimal solution would be to issue shares on the stock exchange. So you can quickly get large investments. An initial public offering ( IPO ) is when a previously unlisted firm sells new or existing securities and offers them to the public for the first time. An IPO opens up new opportunities for organizations to raise capital. This can be a good move for private investors to make a profit on their investments.

preliminary stage

Initial public offerings usually include issue premiums for current private investors. At the same time allowing public investors to participate in the offer. In addition to an IPO, a company can also go public through a direct listing, in which it does not sell Industry Email List new securities or raise capital. Companies go public through the IPO process for one or more of the following reasons: Capital Raising – This capital can be used to fund, acquire, or pay off existing debt.

Preparatory stage

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To enter the stock exchange, the company must have a rich history and published reports for the last 2-3 years. For example, with regard to the New York Stock Exchange, the value of the company should be over. preliminary stage This is the longest stage, which takes from 3 months to 3 years. Main goals: commercialization of the company; issue and sale of securities . During this period of time, the company will have to evaluate its main indicators, namely assets and corporate governance. Only in this way will it be possible to accurately find out the price and  Country List number of shares to be issued and, of course, to establish the future capitalization of the company. It is also necessary to assess the level of information and financial accessibility. This will have a positive impact on increasing the growth of investor confidence in the business and enhancing its reputation.

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