INITIAL PUBLIC OFFERINGS

If you would like to discuss any particular IPO with Seagrave Capital Management please feel free to contact us and we will be more than happy to guide you through the process step by step ensuring you are safe every step of the way.  

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Initial Public Offerings

There There are a few things you need to know before you buy an I.P.O. or Initial Public Offering so that you will be prepared for the next big I.P.O. to be launched and that you would like to invest into and with many big IPO's on the horizon it's better to be prepared. 

 

“An initial public offering (IPO) refers to the process of offering shares of a “private corporation” to the public in a new stock issuance. Public share issuance allows a company to raise capital from public investors. The transition from a private to a public company can be an important time for private investors to fully realize gains from their investment as it typically includes share premiums for current private investors. Meanwhile, it also allows public investors to participate in the offering. 

 

A company planning an IPO will typically select an underwriter or underwriters. They will also choose an exchange in which the shares will be issued and subsequently traded publicly.” 

 

An IPO is a process where a private corporation offers shares to the public in order to raise funds for the company. There are several ways for a company to raise funds. There are a few ways that I know: 

 

1. The stockholders will add funds to the company or the company will look for new investors and issue stocks. 

2. The company will loan from a Financial Institution. 

3. The company will issue a Bond or if the company is a Bank. 

4. The company will issue an IPO. 

5. The company will issue a Follow On Offering. 

 

Research is one of the most important things that you have to do and really know and understand about the company prior to investing in their IPO. As due diligence, you have to know some important information about the company prior to buying their shares as you really have to know where you are going to invest your hard-earned money. Here are some key areas that you should know about the company : 

 

1. How old is the company? 

2. What is its main business? 

3. Who are the owners? 

4. Are they known in their industry? 

5. Financial Statements – if possible (you must know if the company is earning or will potentially grow in the future) and how much is the company worth. 

 

Another thing you must know is the purpose of the company for issuing IPO or why does the company need to raise funds? Because the issuance of an IPO is a way for the company to raise funds, as due diligence, it is essential you know the purpose of the company issuing the IPO.  

 

This can be a difficult process at times especially if you are not sure where to find the information you may need. This is where Seagrave Capital Management comes into their own as over the years we have been involved in many Initial Public Offerings and have a team of IPO experts on hand to assist you in making the right choice and more importantly you have the key information that can help you make your choice.  

 

Seagrave Capital Management work 365 days a year to analyze the right opportunities to bring to our clients at the right time, more importantly we are sensible investors and the art to an IPO is timing on 2 sides the first ''The Right Time to Buy'' and secondly ''The Right Time to Sell'' 

 

If you would like to discuss any particular IPO with Seagrave Capital Management please feel free to contact us and we will be more than happy to guide you through the process step by step ensuring you are safe every step of the way.