I

Glossary · PSX term

Initial Public Offering (IPO).

An IPO is the first sale of a company's shares to the public when it lists on the exchange.

Definition

In an IPO, a private company raises capital by selling shares to investors, often through a book-building process for institutions followed by a public subscription. After the IPO, the shares trade freely on the PSX.

Worked example

A company conducts an IPO at a strike price determined by book-building, then opens a public subscription before listing.

Related on PSX Clarity

Strike price (IPO)

Secondary offering

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