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Apply IPO With 3 Easy Steps
Open AZEE Securities Click and click on IPO
Select the preferred IPO in the upcoming IPO list
Download the form Bid for the IPO
All About IPO’s?
An IPO, or Initial Public Offering, is the process through which a previously completely private business opens up its shares to be traded in public on an exchange. When a company goes public, it hires investment banks to ensure that the IPO results in a high influx of capital from the public. Share markets are of two types: primary markets and secondary markets. Primary markets involve the public investing in the latest upcoming IPOs.
The process involves significant due diligence, advertising, and regulatory compliance efforts. The public buying the newly offered shares includes both retail and institutional investors, while those selling the shares include promoters and initial investors of the company.
In an Initial Public Offering, a private company or corporation sells a portion of its stake to an investor in order to become public. The purpose of an IPO is to infuse new equity capital into the firm, facilitate easy trading of existing assets, raise future capital or monetize stakeholder investments.
A prospectus describing the first sale of shares is available to institutional investors, high net worth individuals, and the public. A prospectus describes the upcoming IPO details. Once the IPO has been completed, the firm’s shares will be listed on the open market. A minimum free float is imposed on the shares by the stock exchange, both in absolute amount and as a percentage of the total share capital.
When a company decides to sell its shares on a stock exchange, it begins the IPO process. After that, an audit must be conducted, taking into account all aspects of the company’s financials. If everything is in order, the company has to prepare a registration statement and file it with SECP (Securities and Exchange Commission of Pakistan).
Following that, the stock exchange that the company wants to list on will review the application, and it will either be accepted or rejected. For IPO listing, the underwriter helps the company on how many shares to issue and at what price if it is approved. Underwriters are usually banks, and their job is to start a book building process to find investors to subscribe to the IPO. Shareholders will receive a prospectus containing information about the shares, where they’ll be listed and the potential opening price. As part of the IPO, non-private investors have the opportunity to purchase shares of the company in a primary market. Before, only institutional investors were able to participate fully in IPOs, while retail investors could only participate in the secondary market when shares were exchanged.
To apply for an Initial Public Offering (IPO) in Pakistan, investors must meet the following eligibility criteria:
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