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Sri Lanka Equity Forum » Stock Market & Forum Help » Stock Trading - IPO's

Stock Trading - IPO's

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1 Stock Trading - IPO's on Sat Apr 23, 2011 6:43 pm

Quibit

avatar
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
I hear a lot about IPOs these days? What is it actually?

Initial Public Offer (IPO) is the method by which a company first enters the share market. The company invites the general public to invest in the shares of the company using a document called a Prospectus. This prospectus has the information about the issue (no. of shares, price per share, how to apply, etc), information about the history of the company, financials, future strategies and so on.

Often in an IPO the issue closes on the same day it opens. How does that happen?

Although there is a day to open the subscription list, you can start applying from the day the Company makes available the Prospectuses to the market. With high investor demand it is very common for IPOs to get oversubscribed. By investing early you can make sure you don't miss out on the chance of applying for a good stock.

What is a Prospectus? From where can I get a Prospectus?

Prospectus gives out the details of the company, details about the shares to be issued, industry information, procedure in applying for shares and so on.

You can get the Prospectus from your broker and also from the respective company. Go through it to see whether you like the company and if you are interested you can fill in the application form and submit it to your broker or to any address specified in the Prospectus along with the required remittance. You should carefully go through the procedure to be followed in applying for shares to make sure your application does not get rejected.

I never get allotted the total number of shares I apply for in an IPO. Why is this?

As a result of the increased investor confidence in the share market, companies going for IPOs get oversubscribed. That is, the company gets applications for more than the number of shares they are issuing. As such the companies have to decide on a ratio or a method to allot shares to all the people who invest in a fair manner. Because of this you will not get the total number of share you apply for. The basis of allotment will be published by the company on the CSE website once it is decided upon.

Can I apply for shares jointly with another person?

Yes, you can.
You can apply jointly with a maximum of two (2) other applicants (your spouse or children above 18 years of age). As such a maximum of three (3) applicants will be accepted as joint holders. You should fill in information for all applicants in the spaces provided in the application form.

What is an 'Introduction'? Can I buy shares from an Introduction?
Introduction is different from an IPO although it is another method of entering the share market. Here the already issued shares of the company would be listed on the stock exchange. You cannot buy shares because shares are not offered to the public. But the company will issue an Introductory Document which you can obtain from your broker and if you are interested in the company you can buy shares in the secondary market.

Copyright: Sri Lanka Equity Analytics
www.srilankaequity.com

2 Re: Stock Trading - IPO's on Fri May 20, 2011 8:18 pm

Akalanka

avatar
Manager - Equity Analytics
Manager - Equity Analytics
@Quibit wrote:I hear a lot about IPOs these days? What is it actually?

Initial Public Offer (IPO) is the method by which a company first enters the share market. The company invites the general public to invest in the shares of the company using a document called a Prospectus. This prospectus has the information about the issue (no. of shares, price per share, how to apply, etc), information about the history of the company, financials, future strategies and so on.

Often in an IPO the issue closes on the same day it opens. How does that happen?

Although there is a day to open the subscription list, you can start applying from the day the Company makes available the Prospectuses to the market. With high investor demand it is very common for IPOs to get oversubscribed. By investing early you can make sure you don't miss out on the chance of applying for a good stock.

What is a Prospectus? From where can I get a Prospectus?

Prospectus gives out the details of the company, details about the shares to be issued, industry information, procedure in applying for shares and so on.

You can get the Prospectus from your broker and also from the respective company. Go through it to see whether you like the company and if you are interested you can fill in the application form and submit it to your broker or to any address specified in the Prospectus along with the required remittance. You should carefully go through the procedure to be followed in applying for shares to make sure your application does not get rejected.

I never get allotted the total number of shares I apply for in an IPO. Why is this?

As a result of the increased investor confidence in the share market, companies going for IPOs get oversubscribed. That is, the company gets applications for more than the number of shares they are issuing. As such the companies have to decide on a ratio or a method to allot shares to all the people who invest in a fair manner. Because of this you will not get the total number of share you apply for. The basis of allotment will be published by the company on the CSE website once it is decided upon.

Can I apply for shares jointly with another person?

Yes, you can.
You can apply jointly with a maximum of two (2) other applicants (your spouse or children above 18 years of age). As such a maximum of three (3) applicants will be accepted as joint holders. You should fill in information for all applicants in the spaces provided in the application form.

What is an 'Introduction'? Can I buy shares from an Introduction?
Introduction is different from an IPO although it is another method of entering the share market. Here the already issued shares of the company would be listed on the stock exchange. You cannot buy shares because shares are not offered to the public. But the company will issue an Introductory Document which you can obtain from your broker and if you are interested in the company you can buy shares in the secondary market.

Copyright: Sri Lanka Equity Analytics
www.srilankaequity.com

[quote=
What is an 'Introduction'? Can I buy shares from an Introduction?
Introduction is different from an IPO although it is another method of entering the share market. Here the already issued shares of the company would be listed on the stock exchange. You cannot buy shares because shares are not offered to the public. But the company will issue an Introductory Document which you can obtain from your broker and if you are interested in the company you can buy shares in the secondary market.

I extracted this from the above post
do have some questions.

1. Do we have to obtain the introductory documents from the company, like in the introduction of Swarnamahal Finance, we have to obtain it from The Swarnamahal.

2. How will be the cost

3. Will it be profitable

4. when will be the trading commence on.


I had never came across any introduction before , thats why i am asking. May be silly questions if possible just make a brif introduction.

thanks in advance. Very Happy

3 Re: Stock Trading - IPO's on Fri May 20, 2011 8:24 pm

milanka

avatar
Vice President - Equity Analytics
Vice President - Equity Analytics
@Akalanka wrote: I extracted this from the above post
do have some questions.

1. Do we have to obtain the introductory documents from the company, like in the introduction of Swarnamahal Finance, we have to obtain it from The Swarnamahal.

2. How will be the cost

3. Will it be profitable

4. when will be the trading commence on.


I had never came across any introduction before , thats why i am asking. May be silly questions if possible just make a brif introduction.

thanks in advance. Very Happy

Answers :
1. Download the Intro documents and fin details from cse.lk site
2. Not like a IPO , do not know the cost in advance , Normal trading , You bid to the sellers price . (only if sellers are avilable )
3. Depending on your buying price and company performance.
4. Trading comence date : get details from cse site.

http://forum.srilankaequity.com/u188

4 Re: Stock Trading - IPO's on Fri May 20, 2011 8:57 pm

Akalanka

avatar
Manager - Equity Analytics
Manager - Equity Analytics
Thanks dude

5 Re: Stock Trading - IPO's on Thu Aug 04, 2011 11:29 am

charith82


Manager - Equity Analytics
Manager - Equity Analytics
good article about IPO's . These days very popular topic in both ways Very Happy Crying or Very sad

6 Re: Stock Trading - IPO's on Mon Oct 10, 2011 4:07 pm

bhanukaf


Stock Trader
in the IPO form, thr is a box asking "NAME, ADDRESS AND SIGNATURE OF FINANCIER (MARGIN TRADING ONLY)" could u please be good enough to advice me on what that means?

7 Re: Stock Trading - IPO's on Wed Mar 05, 2014 2:07 pm

insirocks


Stock Trader
Could any one help me on to find "List of Sri Lankan Companies that are planning to list on the Colombo Stock Exchange " for year 2014

8 Re: Stock Trading - IPO's on Mon Nov 03, 2014 11:40 pm

mayabi


Stock Analytic
Stock Analytic
Very good discussion. About the IPO/  Initial Public offering.

Looking for day traders to trade big size accounts

Equitie BP starts from 50k to few m's with perspective to grow.
Profit target 2-4 % per month.
For short period of time traders will have to use a demo platform before they will get a real account.
Steady day traders only.


P.S. Don't write PM

9 Re: Stock Trading - IPO's on Mon Aug 29, 2016 11:19 am

agrawalmadhuri154


Stock Analytic
Stock Analytic
Commodities have become an attractive investment in recent years, even for those who may not know much about them but would like to get involved in the profit potential for dramatic price advances posted by energy, gains metals and other commodities, lifting them to the highest overall levels in more than 30 years. Some buyers and sellers can trade a commodity market either in the spot market (cash market), in which the buyer and seller immediately complete their transaction based on current amounts, or in the futures market. Futures contracts are the most former way of investing in the commodity market with best knowledge from MCX Tips service Provider India and Equity Tips. Many investor trades in Future contracts because it is secured and it gives additional investment as well as trading opportunity.

http://www.zoidresearch.com/commodity.php

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