Never miss a launch with TBanque's upcoming IPO calendar

An IPO marks an important stage in any business because in many ways it symbolises the growth and development of a company. Furthermore, it provides the company with access to the public capital market and increases its credibility and exposure.

There are several factors that can affect the calculation of a companys IPOs share price. Perhaps the biggest one is public demand, during the subscription period, for the companys stocks. If there is high demand, the share price will rise, and if not, the share price will drop. Another important aspect that could be to the detriment of the IPOs share price is the companys growth expectation, since usually the reason behind a companys aspiration to go public is to raise money for expansion.

1. IPO Underwriter

The first step for a company before it goes public is to choose an investment bank to advise it and to provide it with underwriting services.The bank will then help the company determine the initial price, buy the shares from the issuing company and then sell the shares to investors.

2. Due Diligence

The companys shares will then have to go through a process called Due Diligence, meaning they have to submit to an extensive and thorough review to check the companys financial records, history, etc.

3. The IPO

Once all of the paperwork is approved, the company will start to market and advertise its IPO, to let the public know of the scheduled date. This will help generate the buzz surrounding the companys IPO, and could help influence subscription and, therefore, the companys share price.

Many believe that an IPO share is a good investment because the initial price is often low, and might rise in time.