What is an IPO?

An Initial Public Offering (IPO), commonly known as an IPO, is the process by which a privately owned company offers its shares to the public for the first time. Before an IPO, a company's shares are typically held by its founders, early investors, and employees. After an IPO, members of the public, including retail investors, can buy and sell the company's shares on a stock exchange…

Companies pursue Initial Public Offering (IPOs) for a variety of reasons, including raising capital to fund growth, providing early investors with an opportunity to realise the value of their investment, and increasing the company's public profile…

A Conditional Offer to Buy (COB) is an indication of interest to purchase a specified number of shares in an IPO at the Public Offering Price, contingent upon the registration statement becoming effective with the Securities and Exchange Commission (SEC). Submitting a COB does not guarantee an allocation of shares. The COB represents an investor's intent to purchase shares if the offering proceeds and if they receive an allocation…

There are numerous risks of applying for securities in an Initial Public Offering. If the IPO is over-subscribed, you may not be allotted the quantity of shares you applied for or may not receive any shares. Whether your application is fully allotted or not, you will have the Application Monies locked up during the subscription period…