For an investor to be able to buy and sell shares of a company, the company must go public. The operation that makes it possible for a company to go public is called a Public Offer for Sale (IPO). Before addressing the IPO process, it is interesting to understand why companies decide to go public and what the advantages are and how to know the IPO allotment status.

IPO gives access to financing and liquidity
The main advantage is that an IPO allows a company to obtain economic resources to finance its expansion strategy. Going public gives companies access to market financing, as do subsequent capital increases. At the same time, an IPO gives the private shareholders of a company the possibility of obtaining liquidity by selling part of their shares.

Impulse towards internationalization
In the case of Spanish companies, IPOs are usually motivated mostly by their internationalization plans, as explained by BME in its Guide to going public.

Advantages of assigning a target price by the market
The price at which a company's shares are listed becomes a reference for investors. In addition, the assignment of a target price allows companies to offer shares as a payment method when acquiring another company, as compensation to their employees or as a guarantee of repayment when requesting a loan.

The prestige of the company and its brand
Being listed on the stock exchange gives the company and it's brand greater notoriety and prestige. In addition, the fact of being subject to the supervision and surveillance of regulators gives it greater entity and credibility. It also implies an additional guarantee of solvency. Why? Because for a market to authorize a company to be listed previously, it must have shown that it is profitable and that it has generated profits in recent years. So people want to know about BSE IPO status.

IPO, an incentive for the company to improve its competitiveness
All efforts directed at improving the management of a listed company are positively valued by investors and influence the listing price. Therefore, it is also an incentive for the company itself to improve its competitiveness and professionalize its management.

Public notoriety, after IPO
A publicly traded company automatically receives increased attention from investors, analysts, and the media. The financial press tends to closely follow the financial results and strategic decisions of listed companies, which reinforces their image with the public.

Types of IPOs: IPO and OPS
There are two types of IPO:
• Public Offer for Sale (OPV) :
In the case of the IPO, we are talking about the IPO itself. That is, of a company that for the first time decides to go to the stock market and put the company's shares up for sale.

• Public Subscription Offer (OPS) :
When an OPS takes place, a company that is already listed on the stock market launches new shares on the market. In other words, an increase in the company's capital is carried out through the sale of new titles.

Requirements to be able to go out to the Ibex
The requirements for an IPO vary depending on the stock market. In the case of Ibex, they are the following:
• Have a minimum share capital of 1,202,025 euros, not counting holdings of more than 25%.
• Represent shares by book entries
• Have a minimum market value of 6,000,000 euros
• That at least 25% of the shares are distributed among the public

Requirements to go to the Nasdaq
Given that at Ninety-Nine we offer you all the stocks available on US stock exchanges, below we list some of the requirements that a company must meet in order to be listed on the Nasdaq.

• Capital requirements: Have a minimum capital of 2 million dollars.
• Minimum issue volume: 100,000 shares
• Minimum number of shareholders: more than 300 shareholders
• The total volume of assets: 4 million dollars
• Starting price: $3 million minimum

The initial phase of the IPO process: Due Diligence and social agreements
In the phase prior to listing, the company has to prepare to comply with legal requirements and adjust its bylaws and corporate governance to the structure of the newly listed company. Additionally, it must carry out due diligence, which is an analysis of the financial and legal situation of the company. In Spain, it is an essential step for the subsequent preparation of the information brochure that must be approved by the National Securities Market Commission (CNMV). In this same phase, the IPO operation is also designed.

Application for admission to trading
The company must register its prospectus with the CNMV and present all the documents that prove compliance with the admission requirements. All the risks inherent to the operation and its particularities must be reflected in the information brochure. It also includes information about the results in past years, the management team, profit forecasts or the dividend policy. Approval by the CNMV usually takes between two and four months. The stock exchange on which the shares are to be listed also has to give its approval.

Placement and listing
Advisors, investment banks, broker-dealers and retail financial entities are also involved in this phase, depending on the size of the IPO and the investor profile. In this phase, the equity story is prepared, which is a presentation of the company that highlights its strengths and its growth potential for future investors. A roadshow is also usually held in which the company and its placement agents meet with institutional investors interested in the company.

starting price
It is one of the key elements of the operation. The company must make public an indicative price range before going public, and it is not until the day before that it specifies a fixed starting price. The company must carefully calibrate its starting price and ensure that it is aligned with that of other companies in the sector. It is common for the price to offer a discount compared to other competitors so that the shares are more attractive at the time of the IPO.

The IPO
Once the application for listing on the stock exchange has been approved by the CNMV and the stock exchange on which the company will be listed, an agreement is closed and all the details are finalized. In Spain, the admission of negotiable securities approved by the stock market IPO is published in the Stock Market Listing Bulletin.