Jacqui Newman

An IPO?

An IPO is really the first time that a company offers its shares to the public.

So what is happening is that ownership is transitioning.

So prior to IPO, the company might be owned by founders, by employees, by VC, by private equity.

The process of an IPO takes that company from that private ownership into the public hands, if you like.

There are a number of ways that this can be done.

Firstly, you can use primary shares.

So the company can issue new shares to raise capital and the proceeds of the raise go to the company.

The company might use that to fund growth.

It might use it for acquisitions.

Another component of an IPO might be what's called a secondary sell down.

So this is where you've got the owners, the private owners selling down all or part of their holding.

And that can be, you know, in its entirety or just part of their holding.

So often IPOs are a combination of both.

So you've got this primary and secondary or sell down component there.

But sometimes it's one or the other.

And it's an important thing to be aware of when you're considering any IPO.

I think

What the offer document is really trying to do is provide as much detail as possible around what does this company actually do?

How do they make money?