Frequently Asked Questions
What is an IPO?
IPO is an acronym for Initial Public Offering. A stock market offering is a financial operation that consists of a company increasing its capital by issue of new shares and/or historical shareholders selling their shares in connection with the initial listing of shares on any financial market.
What is Pre-Listing Share Offer?
A pre-listing Share Offer is the last round of fundraising of a company before its IPO. This is usually planned for short to medium term but in companies it might take longer because of unforseen circumstances. Some company may get caught in the legal and administrative demands from the Stock Exchange Regulations.
Why do companies proceed to raise funds before IPO?
The companies that proceed to raise fund prior to an IPO are companies with strong innovative and growth strategies. These companies must make extensive preparations by reinforcing its management control and adopting a true corporate structure. They therefore invest heavily and in many cases beyond their capacity for self financing.
Why should you invest in Pre-Listing Offers?
Pre-IPOs are noted in principle to offer rapid returns on investments. For companies to obtain stock market listings they must be among the most attractive and dynamic because they have passed the riskiest phases to get to this stage. The general rule of thumb is if they got to this stage, and even though their future growth still remains subject to several operational conditions, it is worth a try.
What happens if the company is finally not listed?
Companies can effectively temporarily abandon its IPO project for example due to unfavourable market conditions. In this case, another solution will be found to assure the company continues its marketing strategy either by further capital raises by subscribers, several investment funds or equity backing from major companies. The onus is on the companies, their managers and major shareholders to use their best efforts to find alternative liquidity solutions.
How can I shelter my investment from Taxes?
If you are natural person in Australia, you must pay Taxes. Investments can be made by individuals, companies or through self managed funds. There several tax agents and accountants who specialize in these areas and should be your best port of call. For clients that need help, our team are very happy to help through our handpicked affiliates.