05 / Primary market
IPO stories deserve
more than excitement.
An initial public offering is a company’s route into public markets. Learn how the process works and what to investigate beyond listing-day energy.
The basic idea
From private business
to public company.
In an IPO, a company offers shares to public investors and seeks a listing. The proceeds, offer structure, valuation and future plans should all be part of your research.
A research path
Read beyond the narrative.
What does it do?
Understand the customer, product, market size and competitive advantages described in the offer documents.
How does it earn?
Review revenue quality, margins, cash generation, debt and how the company has changed over time.
Where does money go?
Distinguish between fresh issue proceeds and offers for sale, then consider the stated use of funds.
What are you paying?
Compare the offer valuation with business performance, peers, risks and the expectations embedded in price.
Application, at a high level
Process should not replace research.
Review the official offer documents and risk factors before applying.
Use the applicable supported application route and follow the current instructions.
Listing gains are never guaranteed. Decide whether the company belongs in your plan beyond the first day.