Member in IPO

What is an IPO?

An IPO (Initial Public Offering) is the first public sale of shares of a company, offering a great opportunity to earn returns greater than 20% per transaction, thanks to the expertise of ExoTrade specialists. Every year, between 100 and 400 companies go public with IPO offers.

Why can it be a good option for an investor?

  • It can generate short-term gains of more than 20% for investors who acquire shares during the "Pre-IPO" period or at the beginning of the trading process.
  • As a long-term investment, it provides the opportunity for these promising companies' securities to be listed at their maximum fair value, thereby increasing portfolio returns. Warren Buffett (one of the world's most famous investors) incorporates this into his investment tactics.
  • During the initial public offering, transactions can become more reliable as they allow investors to analyze the company before taking on the risk of acquiring shares, minimizing losses due to price changes during the analysis period.

What are these companies for?

  • Primarily to raise capital, as a large number of global investors are keen to invest in companies focused on development.
  • Additionally, these actions enable companies to secure loans based on the trust of their shares, which positively impacts future performance, both in terms of share value and investor returns.
  • Issuing shares also provides companies with more liquidity, which can be used as a form of payment for employees as bonuses or rewards, and can even be used to settle transactions.
  • Diversification is key, as it prevents asset concentration in one investor's hands, allowing various investors of different sizes to share in the opportunities.

Only 5 Steps to Earn from an IPO

1. Preliminary Details

Once the decision to issue securities is made, the company shares this decision with the public. At this point, ExoTrade specialists begin a detailed study of the company, evaluating its strengths, weaknesses, and the potential benefits that can be gained.

2. Data Analysis

This stage is crucial as it involves verifying all the provided data and information through independent audits by our analysis department, ensuring its authenticity before presenting it to clients.

3. Marketing

ExoTrade specialists evaluate the marketing strategies presented by the company to assess how the demand for shares will unfold. They also analyze any negotiations between institutions and the results of these discussions.

4. Sign Agreement

At this point, in collaboration with external partners, the issuing company determines the market price of its initial public offering. ExoTrade specialists then create personalized investment plans for each client based on their individual expectations and limits.

5. Shares on the Stock Market

The ultimate goal is to list the shares on the stock market after completing the previous steps. At this stage, ExoTrade's analysis department monitors the IPO, enabling clients to open positions from the first moments of trading and achieve returns of over 20% per transaction on the first day of trading.

Each year, over 200 IPOs are listed on the U.S. stock market, although not all succeed once they are publicly traded. However, those that do succeed become memorable success stories.

Examples

Alibaba Group Holdings Ltd

E-Commerce Service

Price per Share $68
First Day IPO Price $100
Sale Price $231.14

+78%

Alibaba Group Holdings Ltd.

The largest IPO in recent years was Alibaba Group Holdings Ltd.'s share placement in 2014. At the time of the placement, the company was valued at $170 billion, yielding $68 per share. On the first day of trading, amidst significant market enthusiasm, the share price rose to nearly $100, representing a 40% gain for investors on day one. Two months later, the share price reached $120, giving investors a 78% return. The highest value of the stock was reached in January 2020, at $231.14 per share.

Snap Inc.

Messaging Application

Volume of Placement $3.4 billion
Price per Share $17
First Day IPO Price $24.48

+43%

Snap Inc.

Snap Inc. was one of the most anticipated technology IPOs since Facebook. It debuted on March 2, 2017, with a placement volume of $3.4 billion. Shares were initially valued at $17 and closed the first trading day at $24.48, providing investors with a 43% return on day one.