IPO and company size

This is a discussion on IPO and company size within the General Trading Chat forums, part of the Reception category; What limitations are there on a company before it can go public? Can a startup of one person do an ...

Reply
 
LinkBack Thread Tools Search this Thread
Old Aug 12, 2017, 1:49pm   #1
 
2 Posts
Joined Aug 2017
IPO and company size

What limitations are there on a company before it can go public? Can a startup of one person do an IPO?
giladsof is offline   Reply With Quote
Old Aug 12, 2017, 6:27pm   #2
 
Lee Shepherd's Avatar
Joined Feb 2008
Quote:
Originally Posted by giladsof View Post
What limitations are there on a company before it can go public? Can a startup of one person do an IPO?
Hi giladsof,

Welcome to the forums. You've asked a good question but to be brutally honest with you here, you are not ready to float your company/business. You would be asking your legal team and not an internet forum (with respect). An IPO (Initial Public Offering) is purely to raise capital for your company. And in short answer to your question, No, 1 person cannot float their company.

Assuming this is a UK float related question then your company would be expected to have many millions under its belt - ie, worth £50m plus.

If you are a smaller business/company looking to raise funds then you can of course take other avenues such as (similar but not quite the same) selling off shares. This would mean selling part of your business in exchange for funds of what you expect your company to exceed or be (typically) worth at the time of the sale.

Dragons den is a good example here on how one would value their business but yet the investor values it differently. If you are prepared to sell off part of your business, expect there to be issues with control, input of investor/s (good or bad intentions/direction) and the funds you would potentially receive and how they are allocated.

In short there is a lot of work to be considered for an IPO and this can take several months, in some cases years to successfully float. Legal bodies, solicitors and bankers are always also involved which soak up a lot of time let alone money.

If you are a small business, and I'm going to assume that you are, looking to raise capital, then a bank loan, business loan or fund and buy back option would be your best route.

Lee
__________________
Check out Lee Shepherds Trading Diary:
http://www.trade2win.com/boards/trad...ing-diary.html
Lee Shepherd is offline   Reply With Quote
Old Aug 12, 2017, 6:51pm   #3
Joined Apr 2016
What caused this need to go IPO ? Has your latest research produced a perfect winning system going back 30 years of historical data ?
EnlightenedJoe is offline   Reply With Quote
Old Aug 12, 2017, 6:59pm   #4
 
2 Posts
Joined Aug 2017
giladsof started this thread So I learn that every stock publicly traded is of a company worth that was worth a few millions at the day of the IPO.

Does that mean that all penny stocks were once worth more, at least at the day of the IPO and later declined in value?
giladsof is offline   Reply With Quote
Old Aug 13, 2017, 2:19pm   #5
 
Quantt's Avatar
Joined Jul 2017
Quote:
Originally Posted by giladsof View Post
So I learn that every stock publicly traded is of a company worth that was worth a few millions at the day of the IPO.

Does that mean that all penny stocks were once worth more, at least at the day of the IPO and later declined in value?
A lot of the penny stocks are traded over the counter - which is another shady place altogether - just read Wolf of Wall Street...
__________________
"If you don't find a way to make money while you sleep, you will work until you die." Warren Buffett, CEO of Berkshire Hathaway.

My number 1 trading rule: EDUCATE YOURSELF!

Before you trade even single penny on the stock market, please spend the time and educate yourself by back testing different trading strategies and ideas - go to eBay and search for "historical stock market data", you can buy 20 years of data for less than $100 - that's all you need to start.
Quantt is offline   Reply With Quote
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Similar Threads
Thread Thread Starter Forum Replies Last Post
How does a company raise capital from an IPO? questionmark General Trading Chat 4 Jan 31, 2017 9:40pm
Value of Bid Size and Ask Size bigjohnY First Steps 18 Apr 6, 2009 4:04am
Ratio between account size and bet size cshieldsx Spread Betting & CFDs 4 Aug 13, 2007 2:05pm

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)