Eternity Law International — News — Payback of IPO

Payback of IPO

Published:
October 31, 2018

Is the investment paid for the placement of the company’s shares on the stock exchange?
Shareholders who sell shares receive cash today, but often lose from selling shares and losing control of the growing company.

In the case of selling its shares on the stock exchange, the company immediately receives money, which is invested in its development. In turn, this means, to a certain extent, the loss of control over it and in the future, with a positive growth dynamics, also the loss of part of the income.

If equity capital is attracted on the open market, then costs may increase long before the insurers and consultants receive profits from IPO.

Additional financial expenditures are also required to comply with the requirements set by the exchange, ensure communication with investors, and provide frequent more detailed reporting.

In some cases, it takes years of checks and calculations to assess the profitability or unprofitableness of conducting an IPO, taking into account the costs of this enterprise.

Market entry factors in the current market environment

Investors’ interest in IPO can vary greatly depending on the action of various factors:

  • general market stability;
  • how market participants relate to IPO at the moment;
  • economic conditions in the industry of interest;
  • changes in technological processes.

We have listed only a few of them. In this case, the most unpredictable is the volatility of the stock market – how much the value of a certain financial instrument is subject to market fluctuations.

Hence it follows that, in the final analysis, depends on the correctly chosen time for entering the IPO, whether the best results will be achieved.

The market sentiment is constantly changing and there is no exact forecast of their changes, but the company must correctly determine the time of entering the stock exchange and be always ready to change its plans if necessary.

Suddenly, a “window” may be open for an IPO company from the desired industry. Preference is given to them at the moment. It happens that this preference is given to companies from all industries.

If at such a moment of the open “window” you do not go to IPO now, but postpone the exit for several weeks, then the deal may be postponed, it may be withdrawn or you will lose value.

You could be interested

Crypto regulation in Seychelles 2023

Legal frames under which crypto regulation in Seychelles is performed, establishes fairly loyal conditions for ICO projects. Here, digital assets are not a currency and are not considered a payment instrument that is offered by financial firms. But at the same time, cryptocoins are more widely used locally. Thus, cryptocurrency is legal in Seychelles and...

Ready-made company in Romania

The nation has undergone several reforms to facilitate commercial operations and draw international investment since entering the European Union. Romania is therefore one of Europe’s most promising countries for foreign investors, while many other customers prefer quicker transactions and the purchase of ready-made businesses. What is a “ready-made” company in Romania? When someone has a...

Company registration in South Africa

South Africa is a jurisdiction that contributes to bringing business to the international level in the shortest possible time and offers favorable conditions for optimizing the tax burden. In this country, it is profitable to conduct a business related to the export and import of goods, since there is no tax duty on capital increases,...

Company registration in Namibia

Namibia is considered one of the richest and most influential countries in the African continent. That is why many foreign entrepreneurs strive to set up businesses there. Organizational forms for businesses in Namibia You can register a commercial structure in Namibia in one of the following forms: a company with limited liability of its participants...

Types of Hungarian companies

The approximate thing before buying or creating a company in Hungary is knowledge and awareness about all aspects of doing business there. A businessman should be aware of laws, taxation, employment, problems and how they can be solved. One of the essential points in commerce activity is choosing the type of company. Thus let’s overview...

Company registration in Bermuda

Bermuda`s islands are a British-settlement, although it is comparable to the United States. It is not the largest archipelago with a population of about 70,000 people. But it has one of the most elevated rates of GDP per person. The region is well-developed in tourism and insurance, but also many investors are willing to transfer...

Related posts

Gambling License: Do I Really Need It?

Why get a gambling license? If you are asking yourself this question, then most likely you want your entity to give virtual asset offerings and do so licitly and transparently. That’s why the answer is obviously yes. This permit gives your organization more opportunities and helps gain recognition and trust. This article will make you...

How to Get a Gambling License in 2025

Perhaps, you’re overwhelmed with the idea to launch your own online casino. You are naturally trying to find out as many details about it as possible and type queries “how to start online casino 2025” or more specific, namely, “how to get a gambling license in 2025.” The latter turns out to be a more...

Payment Institution license in Cyprus

In the fast-developing world of fintech-driven nowaday, getting a PI license in Cyprus is not just a good decision — it is the web-based doorway into the immense EU monetary scheme. Composing very tough regulation, tax perks, and easy access to the rest of Europe thanks to Cyprus being an EU member… No wonder more...

Conclusion of the UAE company to IPO

Conclusion of the UAE company to IPO is an urgent issue for the Dubai market. PPR in the financial market in Dubai is used to massively involve investors in a company with registration in the United Arab Emirates. PPR is the primary public offering, which occupies an important place in the formation of the accelerated...

Benefits from an IPO

Are the revenue and income indicators of the company that entered the IPO changing for the better? Speaking of companies that have already listed their shares on the stock exchange, they were able to provide evidence of the popularity of their product in the market, which should increase the rate of growth in the future....

Difficulties and advantages of going to IPO

Let’s list the main advantages of going public: The amount of cash and long-term capital will increase. It is the attraction of funds that will make it possible to support growth, increase the amount of funds in circulation, make capital investments, increase research and development, refinance, reduce debts, etc. The market value of the company...

Discover our services

The international company Eternity Law International provides professional services in the field of international consulting, auditing services, legal and tax services.

Ready-made companies for sale

Companies with a bank account around the world

Banks for sale

Established Banks for sale

Ready-made licenses for sale

Forex, cryptocurrencies, gambling, EMI, PSP, SVF, MSO, DLT

Licensing

Forex licenses, cryptocurrencies, gambling, EMI, PSP, SVF, MSO, DLT

Offshore company registration

Expert advice on the acquisition of an offshore company

Open a bank account

Open bank accounts in more than 120 banks around the world
Fill the blank: