Upcoming IPO in Share Market

An initial public offering (IPO), referred to simply as an "offering" or "flotation", is when a company (called the issuer) issues common stock to the public for the first time. They are often issued by smaller, younger companies seeking capital to expand, but can also be done by large privately owned companies looking to become publicly traded.

When a company lists its securities on a public exchange, the money paid by investors for the newly-issued shares goes directly to the company (in contrast to a later trade of shares on the exchange, where the money passes between investors). An IPO, therefore, allows a company to tap a wide pool of investors to provide it with capital for future growth, repayment of debt or working capital. A company selling common shares is never required to repay the capital to investors. Stock Tips is realy avery helpful for IPO before starting a business in  the stock market.

Once a company is listed, it is able to issue additional common shares via a secondary offering, thereby again providing itself with capital for expansion without incurring any debt. This ability to quickly raise large amounts of capital from the market is a key reason many companies seek to go public.

There are several benefits to being a public company, namely:

1 Bolstering and diversifying equity base

2 Enabling cheaper access to capital

3 Exposure, prestige and public image

4 Attracting and retaining better management and employees through liquid equity participation

5 Facilitating acquisitions

6 Creating multiple financing opportunities: equity, convertible debt, cheaper bank loans, etc.

7 Increased liquidity for equity holder

IPOs generally involve one or more investment banks known as "underwriters". The company offering its shares, called the "issuer", enters a contract with a lead underwriter to sell its shares to the public. The underwriter then approaches investors with offers to sell these shares.

Upcoming IPO in Share Market