Introduction
Stocks are traded on the stock market. However, before the public can trade, they must be made available. This is where an Initial Public Offering (IPO) steps into the picture. It is a company's grand debut as it enters the stock market. IPOs are amongst the most anticipated events in the world of trading.
This article introduces you to what an IPO means, its benefits, and the list of upcoming IPOs.
What is an IPO?
As the name suggests, an initial public offering (IPO) is the process through which companies list their stocks on the exchange. It is the first time a company's stocks are publicly available. Companies commonly undertake this move to raise the capital needed to fuel expansion, growth, and debt repayment. IPOs offer you a simple means of long-term wealth building by offering an affordable entry point and transparent pricing.
Before going public, companies usually hire investment banks to ensure the needed influx of capital from the IPO. To qualify for an upcoming IPO, companies are required to undergo vigorous due diligence and ensure regulatory compliance. The sellers in an IPO are the company's initial investors and promoters, while the buyers are institutional and retail investors.
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Why Should You Invest in an IPO?
Investing in a new IPO gives you early access to a company's future growth, especially if it has good potential. Being a part of an IPO is a thrilling experience because you get to be a part of something new. Similarly, adding stocks from an IPO results in portfolio diversification while increasing the potential for big returns. Another benefit is that it can be a cost-effective purchase, granting you shareholder authority. IPOs provide a fair opportunity for retail investors who can rest easy knowing the companies participating in it have adhered to strict SEBI regulations. Apart from all this, IPOs allow you to invest in companies you believe in and wish to support.
Learning about the upcoming IPOs is recommended because it allows you to thoroughly research the companies and plan your investment strategy. It ensures you can make informed decisions to optimise your returns.
Upcoming IPO List
Here are upcoming IPOs that will be issued in January 2025. You can see the issue size, issue date and the price range for each IPO listing
Here are upcoming IPOs where the issue date is not yet announced.
Conclusion
IPOs can be appealing to you if you are a risk-taker and wish huge profits. IPO equities can be volatile, especially in the first few months following listing. As a long -term investor, you must assess the company's growth, management, governance, and competitive position before you make any investment decisions. Finally, learn the market conditions, especially in tough economies, as they might affect your IPOs performance.
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