There are many reasons to invest in an IPO (Initial Public Offering). The most common reason of all is to generate capital fairly quickly compared to other long-term investments. Amazon.com Inc. launched an initial public offering in 1997; each share was priced at $18. Everyone who invested $5,000 in Amazon's IPO now has $ 2.5 million in 2018.

How does it work, you ask? By investing in an initial public offering, you become part of a company with high growth potential. Let's say you invest in a young company that sells disruptive technology. If they can beat the market and make a profit, you too would benefit from its success.


Now let's look at some of the benefits of investing in an IPO.

  • IPO are equity investments. Hence, they can bring significant long-term benefits. The resulting combination with shares & stocks can help you achieve long-term financial goals like retiring or buying a home.
  • The price of the securities issued is specified in the IPO application document. This gives you access to the same information as the big investors.
  • If you are investing in small businesses with significant growth potential, the IPO price is usually the cheapest. This is because the company can offer discount rates.

If you miss the IPO window, investing in a promising company later in its journey can be difficult as stock prices would skyrocket. IPPL sophisticated service is here to help you out in your Quest.