IPO definition

A - B - C - D - E - F - G - H - I - L - M - N - O - P - Q - R - S - T - U - V - W - Y

See all glossary trading terms

IPO has a particular significance in relation to IG's platform. Here, we define IPO in general investing and explain what it means to you when trading with IG.

What is an IPO?

When a company embarks on an IPO (which stands for initial public offering) it goes public on a stock exchange. This can also be known as floating, flotation, or just ‘going public’.

IPOs are one of many ways in which companies can seek to raise capital, with other popular options including finding major investors, crowdfunding or using retained earnings.

A successful IPO can raise huge amounts of capital: as Alibaba did in 2014 when it floated on the New York Stock Exchange and raised over $20 billion. However, IPOs also incur considerable costs and require the company involved to make itself fit for the public eye and its exchange’s compliance rules.

This all makes any float a costly consideration for a business. For traders, though, a float can be a great way of getting a share of a company the moment it hits the stock market.

Contact us

Our office is open 5 days a week Monday to Friday from 9am to 6pm. Support line is available 24hrs a day from 8am GMT Saturday to 10pm GMT Friday

+65 6390 5118

You can also email us helpdesk@ig.com.sg

Visit our storefront office at 9 Battery Road