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“window” you do not go to IPO now, but postpone the exit for several weeks, then the deal may be postponed, it may be withdrawn or you will lose value.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

Investment fund in SVG

Saint Vincent and the Grenadines (SVG), a picturesque Caribbean nation, is not only known for its stunning landscapes and vibrant culture but is also gaining recognition as an emerging destination for acquisition. One avenue that has been gaining traction in SVG’s monetary landscape is the establishment and growth of acquisition funds. In this article, we...

ISO 14001 Concept & Importance

It is widely recognized that environmental problems are increasingly affecting the future strategic direction of every enterprise around the world. In addition to the growing demand for vital natural resources such as water, has prompted some organizations to incorporate “green thinking” into their activities. These so-called “green companies” are moving in this direction not only...

Which Licences and Permits are required to start business in Switzerland ?

1. Trade License Acquiring a pervasive trade licence is a pivotal step for most commercial functioning in Switzerland. This licence is mandatory that assures your commercial functioning bonds to indigenous market rules and protocols. Here’s what you should know: Submission routine: You can apply for a commercial licence to the local canton’s market branch. This...

British Virgin Islands Trust

British Virgin Islands Trust – an urgent issue, since the British Virgin Islands have recently attracted enough attention to themselves. The variety of financial instruments and the focus of legislation on foreign partners obviously play a significant role, especially for investment purposes or to ensure the safety of assets. Local trusts deserve special attention. Comparing...

Company registration in Hong Kong

Having an impeccable rank of a financial backer’s heaven, Hong Kong offering unmatched oportunities for establishments, looking to prosper in Asia and then some. As a worldwide monetary center point represented by a supportive of business organization, it investigates every possibility in its obligation to cultivating achievement. Nowadays, Company registration in Hong Kong became crucial...

Digital Banks

Digital banks: source of profit or cause of loss? In the era of innovative technologies, the so-called “digital banks” have become very widespread in the world. These are platforms that do not have their own branches in the traditional sense – offices with employees, cash desks, ATMs and terminals. The emergence and development of such...

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:

Zurich

Dreikonigstrasse, 31A, Stockerhof
+41 435 50 73 23

Kyiv

Baseina street, 7
+38 094 712 03 54

London

Grosvenor Gardens, 52
+44 203 868 34 37

Washington

1629 K St. Suite 300 N.W.
+1 (888) 647 05 40 Toll Free

Vilnius

Gediminas Avenue, 44A
+370 52 11 14 32

Tallinn

Kesklinna linnaosa, Tuukri 19
+372 880 41 85

Edinburgh

Lochrin Square, 1
+44 203 868 34 37

Nicosia

Jacovides Tower, 5 floor
+371 665 550 51

Riga

Esplanade, 7 floor
+371 665 550 51

Hong Kong

18 Harbour Road, 35/F, Central Plaza, Wanchai
800938622 Toll Free

Singapore

Level 42, Suntec Tower Three, 8 Temasek Boulevard
+6531594300

Sydney

20 Martin Place
+61 2 888 00 365

Porto

2609 Avenida da Boavista
+351 800 500 206 Toll Free

Tbilisi

Revaz Tabukashvili Str., N 45, area N 7
+995706070360