What You Need to Know to Win the IPO Game

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Making the decision to take your company public can be a daunting one. The legal complexities can feel overwhelming and the support and counsel of an IPO company offering IPO services. Navigating those complexities successfully can make all the difference in the IPO process and beyond. Increased publicity and access to additional funds are some of the benefits of an IPO and is often an important part of expanding a business.

After the 1990s when the term initial public offering (IPO) first slipped into everyday speech, interest in IPOs has had significant highs and lows but of late there has been a definite resurgence with 2015 registering the best IPO season since the hype of the 2000s. About 10% to 15% of a company is offered for sale in an IPO. There is usually a lock-down period of between three and 24 months in most IPOs. During this time the insiders of the company and the underwriters are prohibited from selling any shares of stock for that period by a legally binding contracts.

Institutional investors can benefit from IPOs if they are willing to buy large amounts of stock prior to the company debuting. Investing in IPOs can make financial sense, especially since the price of stock is typically 13% to 15% less than it is at regular trading prices. But for those looking to invest in an IPO, a prime broker — which offers a fixed suite of services including advice and assistance with such IPO outings — is a good investment. Picking prime brokers means assessing a number of things, including commission rates, margin rates, access to seed capital, but most importantly prime broker services should have access to a strong short desk, so that you have the capability to short IPOs within a few days of the offering.

IPO services can make all the difference from both sides of the investment divide. With a rise in value of more than 50%, FitBit has certainly realized the potential of the IPO and benefited both the company and the investors. More than 36 million shares were released in June 2015 in an IPO valued at $741 million. Specialist help whether you are planning to go public or invest in such IPOs is vital to make he most of the situation and navigate the complexities of the issue.

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