IPO-“Initial Public Offering” a Universal Online Share Trading

March 22nd, 2009  | Published in Investment  |  1 Comment








by Mr. Rajesh
The 2 Year factor A Company which aims to go public should act like a Public company in advance of two years as the preferred IPO. Once a company plans to go Public, it should select the IPO team. This would include a lead investment bank, an accountant and a law firm. A “All-hands” meeting is an official meeting that takes place six to eight weeks before a company formally registers with the Securities & Exchange Commission. A suitable timetable of duties will be assigned to the IPO team members.
The First Step The most significant and time-consuming task facing the IPO team is the extension of the prospectus. The prospectus is basically a business document that primarily serves as a brochure for the company. This brochure includes all financial data of the company for the past five years, information on the management team, and a description of a company’s target market, competitors and growth strategy. Soon after getting the final approval from security exchange commission, the national association of security dealers and other security organizations start reviewing the final document.
Stepping Out The next step in the Initial Public Offering process is a “road show” which usually lasts a week or two. The company administration goes to a new city every day to meet with potential investors and explain their business plan. A company’s administration team performs the road show to explain the success of the IPO. Companies must make an impact on institutional investors to bring them aboard as significant stakeholders.
The Right Price Investment banks try to put forward a suitable price based on expected demands for the deal and other market conditions. The pricing of an IPO is an insubstantial complementary act. Investment firms have to worry about two diverse sets of clients while the company is going public. It also wants to raise as much money as possible. The investors buying the shares expect to see immediate appreciation in their investment.
Navia Markets Investment banks normally try to price an agreement; hence the opening premium is about 15 percent. Many online IPO’s, of course, have raised a large amount on their first day. The offering price should been confirmed at least two days after prospective investors receive the final prospectus. Then an IPO is confirmed effective. Navia Markets a South Indian E- Brokering Company offers effective IPO Services to Resident Indians and NRI’s.
Reverse IPO An IPO is not confirmed final until seven days after the company’s market debut. On rare occasions, an IPO can be canceled even after a stock starts trading. In such cases, all trading is canceled and any money collected from investors is returned. When a public company is acquired by a private company, this is known as a reverse IPO. This allows a private company to go public at a lesser cost and has diminished risk of stock dilution through an IPO.
About the Author
Rajesh Assistant Vice President Navia Markets Financial Services Pvt Ltd Chennai-34 http://www.naviamarkets.com/

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