IPOs & Share Offers
Browse our current and recent work on capital raisings and initial public offers across all industries, sectors and varying sizes.
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What is an IPO or Share Offer?
An offering refers to when a company issues or sells a security. The most common form is an initial public offering (IPO), when a company’s stock is made available for purchase by the public. It can also be used in the context of an already listed company seeking to raise equity capital by offering new shares to a number of selected investors, referred to as a placement offer.
Receiving a Prospectus
Receiving a prospectus
To initiate an IPO for equity capital, a company must create a detailed prospectus and submit it to the Australian Securities and Investments Commission (ASIC). This document should encompass essential information for investors to make informed judgments about investing in the company. The prospectus ensures transparency and regulatory compliance, fostering a conducive environment for IPOs.
Taking applications
The company selects recipients for its shares, which may include customers, institutional investors, or the general public. To apply for shares, eligible individuals can complete the prospectus application form or use their participating broker in the IPO.
Share allocations
After receiving applications, the company and its advisers will confirm allocations. An oversubscribed IPO occurs when applications exceed available shares. This may result in a 'scale back,' where your application could receive fewer, or no shares than initially requested.
Company listing
After making allocations and receiving application funds, the new shares are officially 'listed' on the share market. Post-listing, the company's shares become tradable, subject to market dynamics, with prices influenced by supply, demand, and market conditions.
Post listing rights issues
A 'rights issue' occurs when a listed company aims to raise extra capital by providing new shares to current shareholders. These additional shares are offered based on a predetermined ratio, like one for every ten held. Typically, rights issues come with a discount on the current market price. Participation is voluntary for existing shareholders.
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