Initial Public Offering is the public sale of shares of a private company through the sale of depositary receipts for securities. So the company plans to attract money from investors, to increase the liquidity of its securities by buying and selling them on the stock exchange and in general to increase its own visibility.
IPO is an initial public offering of securities at the stock exchange. This is the way companies raise additional funds for business development. This type of investment is considered somewhat more risky than the purchase of shares, but much more profitable. In most cases, shares on the stock exchange start trading well above the offering price, and the investor is in the black from the first day of trading.
Previously, private investors could not participate in IPOs, but that is no longer the case today. Investors with relatively small capital can buy shares of the most promising companies before they go public.
The advantage for the investor is to buy the asset at the cheapest possible price and sell it at the moment the maximum price is reached at the time the shares are listed on the stock exchange.
July 16, 2018 The IPO of Tenable is an American company that develops cybersecurity software. The company’s customer base grew 19% over the year, and revenue grew 51%. More than half of the Fortune 500 companies, including Amazon, Apple, and JP Morgan, use Tenable products. And Tenable is not leveraged, which shows it is in a very good financial position. Previous information security offerings have shown returns of between 23% and 140%, which also speaks to participation in the idea.
July 25 is the last day to apply for the investment, which means the investor has 10 days to make a decision. Suppose the total amount to invest is $15,000, then $5,000 is given to Tenable (1/3 of the capital), $10,000 remains in the account for new ideas.
July 26 – The company offers stock at $23. The stock started trading at $33, meaning the paper gain was about 43% on the first day. The stock then declined slightly and traded around $30, which is about 30% above the offering.
July 28 is an early exit from the trade. The broker usually charges a fee for his services: about 3% for entry, 1.75% for exit, and 20% of the profit. Assuming that the stock price remains at the same level by the closing date and the investment is closed at $30, the profit is $5,000 * 30.43% = $1,521. Subtract 20% commission from the profit ($250), and we get a net income of $1,271 on a $5,000 investment. This is 25.42% net income from an investment of 2 weeks, and over 100% per annum, provided reinvesting profits in other investment ideas.
AI-TON analysts are constantly searching for offers on the OTC market, analyzing the financial statements, a description of the company's business, future plans, the possibility of a takeover or multiple capitalization growth, as well as the risks that may hinder the development of the business. The best offers we offer our investors
As part of its OTC stock purchase service, AI-TON acquires units of funds holding shares in private companies for its traders and investors. Such funds invest in private companies at an early stage or purchase shares from company employees.
After the IPO procedure, the shares are at the disposal of AI-TON. They can be sold after the agreed lock-up period of six months. Or hedged during this period. Before the IPO, AI-TON looks for an exit on the over-the-counter market. When an optimal offer appears, the shares are sold
After the expiration of the Lock Up period, the investment is automatically closed and the investor receives a profit to the account, minus AI-TON commissions. For investors whose investment amount exceeds $100,000, there is an opportunity for individual search of counterparty in the over-the-counter market and profit before the company's IPO and, as a consequence, before the end of the Lock Up period.