An initial public offering (IPO), new stock issuance allows a company to raise capital from public investors. This process refers to private companies offering their shares to the public for the first time. Usually, private companies go out to issue and raise funds and capital from the public to expand and grow beyond the capacity of existing financially capable controlling shareholders as a private company. Following the issue, the shares are traded on the open stock market.
How It Works:
An offering is usually carried out by one or more investment banks, which also take care of listing the shares on the stock exchange, by this process a private company becomes a public company. An initial public offering (IPO) refers to the process of offering a share of a private corporation to the public in a new share issue.
In total, the number of shares that the company sells and the price at which the shares are sold are the factors that yield the value of the company’s new capital. The capital still represents investor-owned shares when they are private and public, but in the IPO the capital increases significantly with cash from the initial public offering.
TipRanks allows investors to discover new initial public offering stocks based on the latest IPO news and find the most recent list of upcoming initial public offerings.