initial public offering

(redirected from initial offering)
Also found in: Dictionary, Thesaurus.

Initial public offering (IPO)

A company's first sale of stock to the public. Securities offered in an IPO are often, but not always, those of young, small companies seeking outside equity capital and a public market for their stock. Investors purchasing stock in IPOs generally must be prepared to accept considerable risks for the possibility of large gains. IPOs by investment companies (closed-end funds) usually include underwriting fees that represent a load to buyers.

Initial Public Offering

The first price for which a company offers to sell stock in itself when it moves from private ownership to public trade. More generally, it refers to the actual first sale of stock to the public. Small companies looking for a new source of financing offer most IPOs, but large companies who wish to be publicly traded can offer them as well. An IPO is generally a risky investment, because one does not know how much demand will exist for the stock after its initial offering; the risk comes from the uncertainty about the stock's resale value. See also: Publicly-traded company.

initial public offering (IPO)

A company's first sale of stock to the public. Securities offered in an IPO are often but not always those of young, small companies seeking outside equity capital and a public market for their stock. Investors purchasing stock in IPOs generally assume very large risks for the possibility of large gains. See also pre-IPO.

Initial public offering (IPO).

When a company reaches a certain stage in its growth, it may decide to issue stock, or go public, with an initial public offering (IPO). The goal may be to raise capital, to provide liquidity for the existing shareholders, or a number of other reasons.

Any company planning an IPO must register its offering with the Securities and Exchange Commission (SEC).

In most cases, the company works with an investment bank, which underwrites the offering. That means marketing the shares being offered to the public at a set price with the expectation of making a profit.

initial public offering (IPO)

the first public sale of shares in a firm having newly obtained a STOCK MARKET listing.

initial public offering (IPO)

the first sale of the SHARES/STOCK to investors in a firm that has newly obtained a STOCK EXCHANGE listing. Mostly, IPOs involve previously private firms converting to public limited company (plc) status. IPOs are undertaken to release capital for the original owners of the business and to provide additional finance to fund the expansion of the business. See SHARE ISSUE, JOINT-STOCK COMPANY.
References in periodicals archive ?
00 per share price offered in the initial offering period will be paid during the subsequent offering period.
The initial offering includes Series A warrants to purchase an aggregate of 1,409,423 shares of common stock and Series B warrants, which are not exercisable for the first six months.
Since the proceeds of the Initial Offering were used to reduce indebtedness, historical revenue and net operating incomewere unaffected bythe Initial Offering, and comparison of these items for pre and post offering periods remain valid.
New York City time, on March 3, 2011, a total of 7,410,530 shares have been validly tendered and not properly withdrawn during the initial offering period and the subsequent offering period, representing approximately 71.
The initial offering period expired at 12:00 midnight, New York City time, on October 9, 2012.
The company launched its initial offering at 13-1/4 in July and closed at $10 a share Wednesday, down -1/4.
25 net per share in cash consideration paid during the initial offering period.
Following the expiration of the initial offering period, the final results of its self tender offer show that a total of 11,000 shares of voting common stock were validly tendered, representing approximately 34.
Under the shelf, the total amount of non-convertible Series B Preference Stock that can be offered from time to time, including this proposed initial offering, is increased from $750 million to $1.
The proceeds from this initial offering will be used to aggressively implement the marketing and distribution efforts for the nationwide launch of both Jana Water and Skinny Water.

Full browser ?