IPO Subscription

An initial public offering (IPO) is a company's first sale of stocks, bonds or certificates of deposit to the public in order to raise funds for company development and future expansion. Before subscribing to an IPO, you should peruse the prospectus and compare the P/E ratios of peers in the same industry to evaluate the IPO shares.

Benefits of Investing IPO

Buy at a Relatively Low Price

Newly formed companies usually offer their shares for subscription at par values, whereas existing companies offer a discounted market price of their existing shares. You will get a chance to buy the shares at a relatively low price via IPO subscription.

Invest from the Beginning

If investors believe it has long-term potential, investing with the company right from the beginning will boost your net-worth substantially.

Quick Returns with Huge Demand

Hot IPOs always appeal to investors who anticipate that the demand for shares will outstrip the number of shares offered, leading to a sharp rise in the stock price on the listing day. Investors might expect quick returns with the huge demand, or take it a long-term opportunity in holding the equity.

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Risks Investing IPO