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IPO is the first company to be listed on the stock market.
Initial Public Offering
IPO shares can be attracted by high initials, growth expectations, and buzz.
In this article, we will organize IPO’s mechanisms, benefits and attention for beginners.
What is IPO?
IPO is an unlisted company that debuts the stock market.
For example, we will list new items such as Toshin Growth and 。DAQ.
Companies can fund from investors by IPO.
After listing, individual investors and institutional investors will be able to buy and sell their shares.
Why IPO?
There are three main reasons:
| Reason | 内容 |
|---|---|
| 資金調達 | Earn funds for growth investment |
| Name | Improve reliability and recruitment |
| Founder's profit | Stock sale and asset value visualization |
In particular, growth companies aim to expand their business with large funds in IPO.
On the other hand, IPO is not just a financing event, but a company management shift because it is possible to respond to quarterly accountability and shareholders when listed.
Why IPO shares are popular
Expectations
There are cases where IPO is higher than the public price.
This is the first value rise.
If demand is strong, it may rise greatly.
Therefore, investors aiming for short-term profit will be able to attract attention.
Growth Expectations
IPO companies often see growth areas such as AI, SaaS, semiconductors, and bio.
The market can be expected to grow in the future, and it may be highly appreciated in deficit.
However, it is important to see the contents of the growth story because there are cases that are only bought at the end of the expectation.
Rare
IPO shares are limited.
In popular cases, it becomes a lottery at a securities company and it is not easy.
This is also a factor that increases popularity.
IPO Flow
The basic flow is here.
| Flow | 内容 |
|---|---|
| T conditions | The price is determined |
| Book Building | Investor Relations |
| 抽選 | Winners are determined |
| Listed | Trading begins |
IPOs will not be able to buy any of them, but will be sold on the market on the day of the listing after the application procedure and lottery before the listing.
What is Bookbuilding?
Bookbuilding is the application period of IPO.
Investors are asked to purchase this price.
The more popular IPO, the more probability of winning is reduced.
For beginners, IPO investments begin with joining this bookbuilding.
IPO Profit Image
For example, if the public price is 1000 yen, the first price is 1500 yen, the profit of 50,000 yen by purchasing 100 shares.
| 内容 | Price |
|---|---|
| Public Price | 1000 |
| First Value | 1500yen |
| Difference | JPY500 |
However, the price may be lowered.
IPO Risks
First Value Split
It is a case that falls from the public price.
In particular, it is easy to occur in lands s, lack of popularity, deficit companies, and large projects.
It is dangerous to think that IPO always rises.
High value movement
IPO投資家 is a big move in investor’s business.
It is easy to concentrate on short-term funds, and it is easy to increase and fall.
Therefore, it is not uncommon to be a loss immediately after buying on the first day of the listing.
Unmatured performance
IPO companies have many young companies and may not have stable profits.
In other words, there is a case ahead of future expectations.
I want to check not only the sales growth rate, but also the事業s and business model事業.
What is lockup?
Lockup is an important term.
Lockup is a contract that large shareholders cannot sell for a certain period of time.
If this is weak, large shareholders and related parties may sell large amounts after listing, and supply and demand may worsen.
IPO analysis is important not only for public price and growth, but also for lock-up conditions.
Points to be considered for beginners
Sales Growth
First of all, check your growth.
Companies with increased sales may be accepted by the market.
Research and Profitability
See whether it can be blackened or profitable.
It is important to check how profits will be in the future even in deficit growth companies.
Listing size
The smaller IPOs tend to be more prone to supply and demand.
On the other hand, even if the large IPO has high attention, the amount of money absorption is large and it may be heavy for the first time.
VC holding ratio
VC is a venture capital.
If the VC holding ratio is high, it may lead to the sold pressure after listing.
It is important to see when and when the shareholder can sell.
Easy to misunderstand for beginners
A common misconception is the idea that IPO is always profitable.
This is different.
In recent years, it is not uncommon to break the first value or 落s after listing.
It is important to see not only the topic, but also the growth and demand.
You need to think about a company that is only riding a popular theme and a company that can grow in the long term.
- IPO Listing
- Popularity with Growth Expectations
- Higher risk
- Lock-up and supply and demand are important
- View results from the topic
IPO investments are important to see companies that can grow long-term rather than buy from listings.