What does IPO mean
IPO did not happen overnight as we saw on the Internet, in the news, in newspapers and wechat. Obviously, Ma Yun did not become the richest man in China overnight. So, what is IPO? How does IPO work? What kind of people or companies and institutions are needed to complete? These are the issues that investors need to consider.
IPO is very simple, is to make money, for the company's shareholders to make money. The purpose of IPO for the company and its shareholders is very simple, mainly for the purpose of financing more money in the open market to operate and develop, or to realize cash out by selling the equity held by IPO. Generally speaking, there are only these two purposes.
How to start IPO
Generally speaking, if a company wants to IPO, it will choose one or several investment banks (investment banks) as underwriters. Of course, companies can run IPOs on their own, but in reality, this has never happened - the experience and ability of investment banks in financial markets are so important.
The underwriter investment bank can work alone or together, but usually one of the underwriting banks will act as the lead underwriter.