WHAT IS AN INITIAL PUBLIC OFFERING?
An IPO is the process by which a private company issues its first shares of stock for public sale. This is also known as “going public.”
BAKIT NAG IPO ANG ISANG KUMPANYA?
Let me try to list reasons bakit nag IPO ang isang kumpanya.
- Simply to raise capital and cash. At some point in growing they need more funding. And going public will help them raise that much amount of money.
- Someone needs money. IPOs are a money-raising event. Either the investors want to cash out, the early employees and/or founders want to get cash or the company needs money to continue its growth and operations.
- Technically an IPO is just another way to raise money, but this time from millions of regular people. In some cases, large amounts or in sectors where private financing isn’t as prevalent. Through an IPO a company can sell stocks on the stock market and anyone can buy them. Since anyone can buy you can likely sell a lot of stock right away rather than go to individual investors and ask them to invest.
- There is another reason to IPO: to monetize shareholders — including employees and investors/backers. The valuation is just paper money until a liquidity event. Following an IPO, it will be easier for employees and companies to cash out.
- Here is another group of people that really want you to IPO. The investment bankers, like JP Morgan, BPI, PNB, to name the most famous ones. They will give you a call and ask to be your lead advisor or underwriter – the bank that advises on the execution of the IPO, prepares your IPO paperwork and calls up wealthy clients to sell them your stock. Why are the bankers so eager? Because they get 7% of all the money you raise in the IPO (depending on what bank and which country).
- Usually companies go public to raise money for the company and/or let some of the existing shareholder sell their shares. That said, there are costs associated with going public- including greater scrutiny of financial reporting and costs associated with listing shares on an exchange.
- Companies also go public so that they could share the risk.
- Another advantage of having a corporation’s shares public listed is the beneficial rate of stock transaction tax (0.5% of the gross selling price), as opposed to 5-10% rate of capital gains tax imposed on shares not listed with the Philippine Stock Exchange. Listing is also used by companies to boost public awareness and interest for a company and its products.
SOME LAWS AND REGULATIONS MAKE IT COMPULSORY FOR A COMPANY WITH INVESTMENT OF CERTAIN VALUE OR ABOVE TO GO PUBLIC IN SOME COUNTRIES.
Meron din mga companies na required by law to go public depende kung aling bansa.
Facebook had a unique problem; it had more than 500 investors. Because it was a class C corporation with more than 500 investors, it was forced to go public. Facebook did not need the funds, so financially it did not need to go public.
Sa Pilipinas meron mga kagaya ng SHELL na required by law na maglist sa PSE.
Magkano ba mag IPO according to PSE?
IPO/LISTING REQUIREMENTS: MAIN BOARD LISTING
LOCK UP PERIOD
IPO/LISTING REQUIREMENTS: SMALL, MEDIUM AND EMERGING (SME) BOARD LISTING
LOCK UP PERIOD
DISTRIBUTION OF SHARES
WHAT WAS MISSING?
May nakita ba kayo nakalista sa reasons na nag IPO ang isang kumpanya concerning sa kikitain ng retailers?
May nakita ba kayo sa reasons ng IPO para payamanin ang mga retailers na bibili ng shares na bebenta ng kumpanya?
May nakita ba kayo na reason kung saan mag IPO ang isang kumpanya “at a discount” dahil concern sila sa kikitain ng mga bibili ng shares ng stock?
Walang negosyo na pumapasok sa stock market para sa ikauunlad ng buhay ng retail traders. They list their company sa stock market dahil mas makakamura sila kumuha ng pera doon instead sa ibang paraan. The company get their money. Banks/underwriters get their money. PSE get their money.
EH BAKIT SABI NILA MALAKI CHANCE TUMAAS KAPAG IPO?
May mga tumataas na stock after IPO. Meron din bumabagsak. It all depends kung saang direction gusto dalhin ng market mover ang stock.
AVAIL IPO AT BENTA KAPAG TUMAAS.
Hmmm…. Hindi lang ikaw ang nag iisip ng ganyan. Most yata ng retailers na plan mag avail ng IPO ay ganyan ang iniisip.
We as your family sa TL, yung gusto lang namin ay educated ka at informed sa mga decisions. We don’t want to take any decisions away from you. All we want is alam mo bakit may IPO. Ano requirements ng IPO. Saan nakalagay ang mga dapat mo malaman about a company na mag IPO (prospectus). Kapag alam mo mga yan, you could make a better decision compared sa iba na di yan alam.
We try to help our TL Family as much as we can.
If you want to learn more about stock trading join our Facebook Group called Trader’s Lounge.
Our advocacy is sharing ideas, experiences and, knowledge to traders for FREE. We offer free Technical/Fundamental Analysis and Market Psychology learning materials.
There are available weekly lessons inside. We created different trading strategies like MAMA which made a lot of traders profitable. Other trading strategies include FISHBALL, PAPA, CALMA and more. We want to offer OFW’s, Employees and all Filipino people a chance to learn without paying a cent.
Youtube Channel is also available where you can watch and listen to my discussions on strategies and trading related topics.
Come join us. Let us push free learning.