Initial public offering (IPO) –Initial Public Offering is a type of public offering made to the public from a company who intends to change from a private enterprise to a public enterprise. The company offers an IPO, the initial sale of their stocks as a lower investment to the public and it is essential for the company to raise funds and capital through the IPO to elevate the business growth in magnitude and operation. The shareholder benefits by owning a percentage of the company depending on the number of shares bought.
FPO or Follow-on public offering –Companies raise their capital for the very first time using IPO, but the companies that are already listed in stock exchanges and are in need to raise fresh capital from the market use Follow-on public offering. This helps for their restructuring and expansion.
For applying in upcoming IPOs or FPOs, you simply need to fill out an IPO application form or visit the websites of various brokers around the web. Demat9 offers the upcoming IPOs and FPOs in India along with the latest news and information on events regarding the same. Investing in an IPO is a perfect opportunity for the investor to get hold of large shares at moderate prices, as the sole objective of a company offering an IPO is to attract high subscription. Investing in an FPO is a perfect opportunity for the investor to get shares of a highly competitive company he always wished to be associated with, but could not due to the high share prices.
Benefits of investing in IPO and FPO