What is an IPO?
What is an IPO?
An Initial Public Offering (IPO) is the first sale of a company's shares on a public stock exchange such as the London Stock Exchange or the PLUS Market.
A company can choose to come to the market for various reasons. Usually it is to raise capital for the company, for instance to expand or grow their business.
Please note this is an advertisement and not a prospectus, and you should not make an investment decision on the information contained here without consulting the relevant prospectus.
Benefits
- The shares are typically attractively priced
- Potential opportunity to invest early in a growing company
- No stamp duty payable
- No commission charged on your initial trade, as we may receive a commission from the issuer of up to 2.5% of the value of total subscriptions.
Risks
- Lack of information and historical data about the Issuer
- Potential for oversubscription
- Share prices can fall as well as rise
- Lock-Up Period - company directors and insiders cannot sell their shares during this time, but afterwards they may sell and the share price could go down
The value of your investments can go down as well as up. You may not get back all the funds you invest.
Tax treatment depends on the individual circumstances of each client and may be subject to change in future.