IPO (INITIAL PUBLIC OFFERING) :
A new listing on the stock exchange.
Listing on the stock exchange allows many investors to invest through the exchange,
instead of only specific shareholders holding shares.
The purpose of going public is different depending on the company.
A prospectus is issued at the time of an IPO. It is important to check the purpose of the listing from this prospectus.
There is a variety of purposes for listing on the stock exchange.
For example, such as increasing recognition, making it easer to attract talented people,
and making it easier to raise fund from many investors.
We can confirm a company's intentions through prospectuses and other disclosure documents.
Each stock market has its own listing standards.
Ref) JAPAN EXCHANGE GROUP - Criteria for Listing
By checking the exchange market where the company is listed, you can understanding the scale of the company.
The underwriting securities company presents the tentative issue conditions to investors and determines the offer price in consideration of investor demand.
The lead managing securities company will set the upper and lower limits of the issue price as a reference price range (tentative conditions) based on the financial conditions of the issuing company.
During the application period (book building period), investors apply their demand (the number of shares and the price) based on the tentative conditions.
No application fee is required at this stage.
The public offering price is determined based on the results of the application and other factors.
The first price at which a newly listed stock is traded after it is listed on the stock market.
※Trading will not start until the price matches the total number of shares of those who want to buy and those who want to sell.
In some cases, the start of initial trading will be carried over to the next business day.