What is an IPO?
An IPO (Initial Public Offering) is the process where a private company offers its shares to the public for the first time through a regulated marketplace. It is often the most sought-after form of exit for investors in unlisted companies.
Why do companies go public?
- Capital raising — The company raises new capital for growth
- Liquidity — Existing shareholders get the opportunity to sell shares
- Visibility — An IPO increases awareness and credibility
- Currency — Listed shares can be used for acquisitions
What does it mean for unlisted share investors?
As an owner of unlisted shares, an IPO is the clearest path to liquidity. During an IPO, your shares are converted to listed shares — but there is often a lock-up period during which insiders cannot sell.