An IPO is the abbreviation for “Initial Public Offering”.
It can also be known as “Initial Price Offering”

An Initial Price Offering (IPO) is where a company raises capital by offering existing or new shares in a company to the public for the first time (also known as a company Float) or otherwise known as “Going Public”.

An IPO allows a privately owned company to expand from a private company, to become listed on a stock exchange such as the Australian Stock Exchange (ASX).

To reinforce this: The main objective of taking a company to an IPO is to raise capital to expand its operations by offering existing shares or the offering of new shares in its company to the public for the first time.

By investing in an IPO, it will allow investors to purchase shares at a pre-set IPO price before the company begins trading on a stock exchange with the hope that the IPO shares that are on offer will increase in value in that company over time.

It’s important to note that there may be a set minimum or maximum amount of IPO shares that may be offered and purchased with any IPO offer.

There are many myths that many IPO offers are initially only offered to existing “High Net Clients” of participating affiliated investment firms, this is incorrect.

All IPOs are open to the general public despite the selective marketing efforts of the underwriting brokerage firm that is offering the IPO.

An IPO is the abbreviation for “Initial Public Offering”.
It can also be known as “Initial Price Offering”

An Initial Price Offering (IPO) is where a company raises capital by offering existing or new shares in a company to the public for the first time (also known as a company Float) or otherwise known as “Going Public”.

An IPO allows a privately owned company to expand from a private company, to become listed on a stock exchange such as the Australian Stock Exchange (ASX).

To reinforce this: The main objective of taking a company to an IPO is to raise capital to expand its operations by offering existing shares or the offering of new shares in its company to the public for the first time.

By investing in an IPO, it will allow investors to purchase shares at a pre-set IPO price before the company begins trading on a stock exchange with the hope that the IPO shares that are on offer will increase in value in that company over time.

It’s important to note that there may be a set minimum or maximum amount of IPO shares that may be offered and purchased with any IPO offer.

There are many myths that many IPO offers are initially only offered to existing “High Net Clients” of participating affiliated investment firms, this is incorrect.

All IPOs are open to the general public despite the selective marketing efforts of the underwriting brokerage firm that is offering the IPO.

How does a pre-IPO work

The purpose of a Pre-IPO is for the company to raise new capital prior to offering shares to the public via an official IPO.

A Pre-IPO is usually offered to larger institutions or Wholesale Investors (Sophisticated Investors) who are larger net worth Investors.

These larger investors are offered the opportunity to purchase larger groups of shares in the selected company at a discounted rate prior to the companies intention of being listed on the stock exchange.

Benefits of Investing in Pre-IPOs

For the Investors: When a Pre-IPO is offered, the company that is offering the Pre-IPO will offer the investors a significantly discounted price for an agreed portion of shares in the company prior to the official launch of the IPO. The price offered will be lower than that what is estimated to be advertised in the company IPO prospectus.

By investing in a Pre-IPO you also have the opportunity to get in at the proposed lowest point (ground Floor) this provides the investor with the opportunity to achieve potential higher growth in a short period of time and over an anticipated longer investment time period.

For the company offering the Pre-IPO: it will help the company with immediate cash flow and reduce financial risks prior to the official IPO offer.

Disadvantages of a Pre-IPO

For the investors: It is widely assumed that the discounted Pre-IPO price offered will be issued at a lower price compared to the price that will be offered to the public, this is not always the case, as the company that issues the shares in a Pre-IPO offer does not have to issue any guarantee that the price is guaranteed to be at a lower price. It is only when an IPO is listed that the actual share Price is determined once it’s listed on the stock market.

For the company: A company does not want to dispose of all of its available shares in a Pre-IPO agreement as it may lead to those Pre-IPO investors to start selling their Pre-IPO issued shares immediately once the company has been listed on the stock exchange at a higher price.

To protect the companies share price, it is common for companies to protect themselves by having the Pre-IPO investor agree to hold the company stocks for a certain time period and or have the investor agree that selling off shares must be in smaller parcels over a  period of time to avoid large sell-offs affecting the market price of that company.

For those companies that would like to explore either a capital raising venture or list their company on a stock exchange as an IPO, we encourage you to contact our office either via phone or by completing the online inquiry form below

Capital Raising Requests

We understand that all companies are different and all companies have their own pre-determined outlook on how they wish to expand or support their current operations. There are many methods that can be implemented to raise capital for a company. We encourage you to contact us to discuss what options are available.

IPO Enquiries

For any company that is considering listing their company via an IPO on an Australian stock exchange, we can help you achieve this by offering the following specialised services.