We use cookies to improve our service. There are a few things, namely, pay attention to the rumours and make your voice heard. To do this effectively, a company will need a strong group of supportive shareholders.
The investment bank might also introduce the company to a select group of investors (normally between five and 20) to gauge interest. An IPO is also a valuable opportunity for the company to raise its profile and generate publicity, attract public market investors, and demonstrate to its investors that it will be submitting itself to a rigorous corporate governance and reporting regime. Rumours may be triggered by a company appointing a new accounting group as its auditor or hiring a copmany like Goldman Sachs as an advisor. During the offer period, no individual investor knows how much other investors are interested in throwing into the round; the amounts raised and received are only made apparent during the allocation period. It adds a flag dropdown to any Given that the IPO process can take a long time, sometimes many years, and that a company must appoint a large number of advisors/service providers to assist with the process, investors often catch wind of a potential IPO well before it is actually officially announced.
In fact, the London Stock Exchange recently published some dire figures around retail involvement, showing that less than 20% of IPOs included a retail tranche. To develop this group, the company must ensure that it hits its promised targets, which were made during the marketing process, and that it reports in a timely and transparent manner on an ongoing basis.
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All investors get to see the Prospectus ahead of investing. The process a company must undertake to list on the stock market is often long and expensive. It can take up to a year of preparation to get a company ready and then two months or so of marketing.
While brokers may shy away from retail, companies might want individual investors involved.
To enable Verizon Media and our partners to process your personal data select 'I agree', or select 'Manage settings' for more information and to manage your choices. All this preparation and marketing ensures that at IPO the company is well positioned to succeed on the next stage of its development. These actions in and of themselves do not necessarily mean that a company is intending to float, but they all add fuel to the rumour-mill fire. Risk warning: Please click here to read the full risk warning.
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