IPO
An IPO, or Initial Public Offering, is when a company first lists its share s on the ASX.
Quick reference:
What happens: Shares offered to the public for the first time. Purpose: Raise money for company growth.
Investor impact: First chance to buy into the company. Risk: Prices can be volatile at the initial listing.
Expanded explanation.
When a company grows to the point that it wants more capital, it may choose to “go public”. This means it sells new shares to investors for the first time in an IPO. Once the IPO is complete, those shares can be traded on the ASX like any other company.
IPOs can be exciting, but also risky. Some companies surge after listing, while others fall if expectations were too high. For beginners, it’s important to remember that buying into an IPO means taking a chance on a company before it has a public track record.
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