Initial Public Offering (IPO)
Definition The first sale of stock by a private company to the public. IPOs are often issued by smaller, younger companies seeking 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), best offering price and time to bring it to market.
Also referred to as a “public offering”.
Source: Investopedia
Apply IPO
- Check the newspaper for prospectus
- Read and understand the prospectus
- Get the application form from stock broking company and post to the issuing house together with personal details and the payment
or apply through Electronic Share Application (ESA) facility.
