Equity Capital Markets
Initial Public Offering
Definition
What is Initial Public Offering?
The first public sale of a private company's shares, after which the shares may trade on an exchange.
Example in practice
How This Looks in Practice
A technology company raises new capital by selling shares to the public through an IPO.
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Related Terms
Equity Capital Markets
Primary Offering
A sale of newly issued securities in which the issuer receives the proceeds.
Equity Capital MarketsSecondary Offering
A sale of existing securities by current holders, so the issuer generally does not receive the proceeds.
Equity Capital MarketsFollow-On Offering
An additional public share sale by a company that is already listed.
Corporate ActionsRights Issue
An offer allowing existing shareholders to buy additional shares, usually in proportion to their holdings.