![]() During the IPO, ownership of shares is transferred from the company to the public.ĭuring secondary trading in the PSE, ownership of shares is simply transferred from one investor to another. New investors, including those who weren’t able to participate during the IPO offer period, may now start buying and selling said shares through the PSE. Listing on the exchange simply means the stock becomes available to the general public as it starts trading in the PSE - the “secondary market” (as opposed to the “primary” market when shares were first offered to brand-new investors who availed of the shares during the IPO). ![]() The listing date is announced and ultimately the stock is listed on the exchange. It simply means that the company and the underwriters that the company hired will conduct a sort of “roadshow” to entice potential investors to subscribe to the shares during the IPO offer period.ĭuring the offer period, the IPO underwriters get to determine overall demand for the company’s stocks and will adjust the IPO offer price as needed, thus leading to “efficient price discovery.” Once the IPO price is finalized and announced, potential investors may then buy shares from the underwriter during the offer period. ![]() When a company conducts an Initial Public Offering (IPO), it undergoes a “book-building process” where investor demand for the IPO is determined to support “efficient price discovery.” Don’t get overwhelmed by that definition. Listing by Way of Introductionįirst things first: what’s the difference between IPO and Listing by Way of Introduction? ![]() What’s Listing by Way of Introduction (LBI) and how is it different with an IPO? When is a company eligible to conduct an LBI? Here are details of this unique market listing method called Listing by Way of Introduction. In the Philippines, a company may list its shares on the Philippine Stock Exchange (PSE) through either one of two ways: Initial Public Offering (IPO) or Listing by Way of Introduction. You’re likely very familiar already with Initial Public Offering or IPO - a way to introduce a company’s shares of stocks to the public for the very first time– but have you heard of a related stock market listing method called Listing by Way of Introduction? ![]()
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