Shares of a company before it offers shares to the public in an initial public offering (IPO), held by employees and other investors is called Pre-IPO shares. Pre-IPO investing is buying shares of a company before it offers shares to the public in an initial public offering.
When Pre-IPO Placement occurs?
It occurs when a part of IPO (Public Initial offering) is engaged with private investors, just before when IPO is ready to hit the market. Usually, private investors in pre-IPO placements have large private equity or hedge funds and they are eager to buy a big stake in a company. Pre-IPO placement’s price is less than prospective IPO price.
Breaking down Pre-IPO placement
How will Oswal Trading help you?
Occasionally an investor of a pre-IPO company needs immediate cash but they are not able to sell those shares easily because the company shares are not listed yet, in this situation we help by buying and selling in pre-IPO company shares.