What is an IPO? How does it work?
An Initial Public Offering (IPO) is the first time that the stock of a private company is offered to the public. IPOs are often issued by smaller, younger companies seeking capital to expand, but they can also be done by large privately owned companies looking to become publicly traded. In an IPO, the issuer obtains the assistance of an underwriting firm, which helps determine what type of security to issue, the best offering price, the amount of shares to be issued and the time to bring it to market.
An IPO is also referred to as a Public Offering. When a company initiates the IPO process, a very specific set of events occurs. The chosen Underwriters facilitate all of these steps.
An external IPO team is formed, consisting of an Underwriter, Lawyers, Certified Public Accountants (CPAs) and Securities and Exchange Commission (SEC) experts.
Information regarding the company is compiled, including financial performance and expected future operations. This becomes part of the company prospectus, which is circulated for review.
The audited financial statements are included in the prospectus.
The company files its prospectus with the SEC and sets a date for the offering.
How does ClickIPO work?
ClickIPO is a mobile-based IPO and Secondary Offering order entry platform and research tool designed for Retail Investors. We make it easy for Retail Investors at any Broker-Dealer to purchase any Offering. We aggregate Retail Investor orders by ...
What if an IPO is priced above or below the price range?
As long as the final price is not 20% above the "price range", your "conditional offer to buy", is still valid. As an example, an offering with a price range of $18-$20 could be priced as high as $23.99 and your "conditional offer to buy" will still ...
Initial Public Offering (IPO)
When a company issues shares to the public for the first time. Known as "going public".
Are all IPOs available to order? When will "X" IPO be available to order?
Not all offerings are available to order. While we do list all offerings, please keep in mind that allocations are never guaranteed. If we expect to receive an allocation from the Underwriter in an offering we will make it available to order on the ...
What is a Secondary or Follow-On Offering? How do they work?
A Secondary or Follow-on Offering is when an already public company registers additional shares. The shares could be newly issued by the company to raise additional capital or a sale by an existing shareholder, or both. A Marketed Secondary Offering ...