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 ?
Google reportedly prefers selling its initial offering through Wall Street and then holding an online auction for the secondary offering.
Pivotal, which listed an initial offering size of $100M its filing, describes itself as a "leading cloud-native platform that makes software development and IT operations a strategic advantage for our customers." It says it leverages relationships with Dell Technologies and VMware (VMW) to "win new customers and to expand our customer footprint." Morgan Stanley, Goldman Sachs Group and Citi are the lead underwriters for the IPO.
The depositary for the tender offer has advised Avast that as of 11:59 p.m., New York City time, on October 14, 2016, 49,241,015 AVG ordinary shares, representing approximately 96.5% of the outstanding AVG ordinary shares, have been validly tendered pursuant to the tender offer, including shares tendered during the initial offering period.
The depositary for the tender offer has advised Intel that, as of the expiration of the initial offering period, a total of approximately 69m shares of Wind River common stock were validly tendered and not withdrawn, representing approximately 89% of the outstanding shares of the company's common stock.
SkyTune and Sarnoff say their initial offering, the SKY5201, will be the foundation for a family of low-cost, PC-centric ATSC broadcast receivers.
The initial offering materials for the Rights Offering will indicate that the rights are non-transferable and may not be purchased or sold.
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.
All of the shares were sold by the company at an initial offering price of USD13.00 per share.
In addition to the initial offering of home-PCs to TDC's 12,000 employees, Topnordic will handle all of TDC's future employee home-PC projects.
The initial offering is for up to 600 million shares of common stock priced at $10.00 per share and also offers up to 185 million shares of common stock at $9.55 per share under its dividend reinvestment plan.
The same per share consideration paid during the initial offering period will be paid during the subsequent offering period.
Energy company Sempra Energy (NYSE:SRE) said on Friday that its subsidiary Infraestructura Energetica Nova SAB de CV (IEnova) has priced its private offering of 91,037,426 shares of Class II, Single Series, common stock at an initial offering price of MXN34.00 per share.

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