initial public offering

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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 ?
The Series B warrants expire on the date ten months from the date the initial offering closes if no registration failure has occurred prior thereto or, if a registration failure does occur prior to such date, on the fourth anniversary of such registration failure.
The initial purchasers in the private offering plus the underwriters in the Mexican public offering have been provided with a 30-day option to purchase up to an additional 28,449,195 shares of common stock at the initial offering price, less the underwriting discount, to cover over allotments, if any.
The procedures for tendering shares during the subsequent offering period are the same as during the initial offering period, except that shares tendered during the subsequent offering period may not be tendered by the guaranteed delivery procedure and may not be withdrawn once tendered.
Procedures for tendering shares during the subsequent offering period are the same as during the initial offering period with two exceptions: (1) stockholders will not be permitted to tender shares by means of guaranteed delivery and (2) pursuant to Rule 14d-7(a)(2) under the Securities Exchange Act of 1934, as amended, shares tendered during the subsequent offering period may not be withdrawn.
California Amplifier - a wireless cable TV and satellite TV reception component manufacturer - launched an initial offering at $10 per share in December 1983 and closed at a 52-week high of 44-1/8 a share Wednesday.
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.
25 net per share in cash consideration paid during the initial offering period.
CEII President Michael Salaman commented that "We are extremely pleased that the market demand has resulted in our initial offering being over subscribed, thus necessitating an increase to the $3 million level.
The proposed initial offering is for the sale of shares and convertible securities in consideration for aggregate immediate net proceeds of approximately NIS135 million.
The issuance of these common shares generated gross proceeds of $20 million, based on the initial offering price of $20 per share.
California United Bank (in organization) has announced the successful completion of the Bank's initial offering of common stock effective April 27, 2005.
The subsequent offering period will permit all stockholders who did not tender shares in the initial offering period to obtain the $3.

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