Initial Public Offerings (IPO)
What is an IPO?
An initial public offering (IPO) is generally known as a the
first sale of a company’s common shares to investors on a
public stock exchange. The main purpose of an IPO is to
raise capital for the company and also in many cases raise
the former privately owned company’s profile in the public
domain.
How does it work?
When a company wishes to go public, it seeks the help of an
underwriter. The underwriter, usually an
investment bank or a Corporate Finance house will agree to
buy a minimum number of shares from the issuer - effectively
insuring the flotation. The underwriter will then sell on
the company's shares to other buyers, usually their clients
or perhaps the underwriter's broking operation.
Can I invest in an IPO?
Demand for IPO stock has historically been tremendous and
offerings are frequently oversubscribed. The result is that
the stock price appreciates greatly on the day of flotation.
Normally Sapphire Securities can via its extensive broker
network offer access to some of the most exciting new
offerings, where the normal private investor is usually not
able to participate.
Not all types of investors qualify for this service. Please
contact your partner for growth for more
information about the future new issues on 0207 100 3544.
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