Initial Public Offering or IPO is trending now in the market and among the biggest beneficiaries are the small cap investors. In the past few years, the IPO market is seen to be a challenge, but the situation is changing lately that makes people watching the market.
Know that IPO is a popular method of taking a company public whenever a company is planning to raise funds to expand its business and for other purposes. This method is described as companies going for an initial public offer, offload their shares and thus raise money from the public.
Note that most IPO companies listed are showing potentials thus making their stocks of great importance to small cap investors. So, when these private companies decide to go public, there is a lot of major decisions to be made. A companys management from venture capitalists, angel investors and private equity firms, all of their founders would want the returns of their investments to be of the highest possible. With the objective of getting the maximum return out of their investments, most venture capitalists and angel investors would pay a lot of scrutiny even to the smallest details of the negotiation.
Be aware that private companies would avoid offering an IPO when the stock market is down, and this is because cost conscious investors will not be willing to pay for the future growth of the company. On the other hand, when the stock market becomes bullish, several IPOs would open up since investors are now willing to overpay.
Usually, at the time of the IPO, you can buy stocks at a low price, and most often, these stocks would skyrocket after weeks and months thus making the investors gain lots of money. Conducting a thorough research would make an investor rich, among which by keeping an eye on the IPOs each year especially the foreign ones.
With a record in a year of $75 billion raised through IPOs, would be enough to let you keep watch of IPOs that would take place if you want to get rich with a good IPO investment.
There is the so-called IPO allotment process where with the help of a lottery system, the process of allocating IPO shares is finalized to the individual who has applied subscription of IPO. Owners of the shares are decided in this simple process of lottery.
In most cases, the allotment status of the lottery will come out within 1 week as the IPO allotment process takes place within a week also. By subscribing, you will be taken to the registrars website where you will find all the necessary details and check the IPO allotment status of all the IPOs released.