Lead Managers and IPO

Abstract

Over the years, the culture of food, travel, and survival gave rise to the concept of sharing, then the barter system, and eventually to a point where we need money to provide for our basic needs and wants. Currency has become the only acceptable token of exchange. This currency or money must be earned. Earnings are done through various means. Whether it is through a profession or business etc. All this forms a vicious circle. Wherein a business employs professionals and others. The thriving of a business becomes essential from an employment, economic development, and social development point of view. A business must keep running successfully and continue to grow. At the same time, new businesses need to spring up. These businesses become new investment opportunities. New employment opportunities. Businesses once started need a flush of money at different stages in their life cycle. IPO (Initial Public Offering) is one of how businesses can raise money. IPOs allow the raising of large scale money. Plus, it also helps a company become publicly visible. To raise money from the public, businesses choose to do an IPO. A private company becomes a public limited company after an IPO by first selling its shares to the public on the main market. Companies are able to raise capital. They can continue to raise money through FPO (Follow up Public Offer). Once listed a company’s credibility in the market increases. Being listed opens many doors for the listed company, and most of these doors help in raising money through various channels. Companies decide to go public for investment and publicity reasons. For investors, IPOs are an indirect way to make great short-term gains. They can make a profit from listing day gains. This has become a rather good trend; most people buy IPOs just to make profits out of the gains that they receive within the first few days of listing a company. Other than this IPOs are great investment opportunities. They can also become an alternative that provides long-term investment opportunities. IPOs are rewarding for both the company issuing them and the investors getting involved with them.