IPO

An initial public offering is a company’s first public offering of shares. It may include newly issued shares, shares sold by existing holders, or both.

Also called Initial public offering

IPO in round numbers

Hypothetical: shares equal to 25% of post-offering equity are sold at a price implying US$800m of total post-offering equity value. Gross proceeds for the shares sold are 25% × US$800m = US$200m before offering costs. The issuer, selling shareholders or both receive those proceeds depending on the primary/secondary mix; the amount is not enterprise value or investment profit.

Exit (harvest) · Strategic buyer · IPO process · Public equity · All of the glossary