Anytime a business venture on the rise announces an IPO (initial public offering, rest assured there is bound to be a lot of excitement in the investment world. Google and Facebook are just two examples that come to mind.
If a private investor wants to get in on the ground floor of a money factory, it would certainly seem that an initial public offering (IPO) would provide the perfect channel by which to do so.
Unfortunately, in many instances, this is not always necessarily the case.
What is an IPO?
An IPO is exactly what the name would suggest: It represents the first time that any given company offers shares in said company to the public realm. Generally, however, the public must initially go through underwriters and institutional investors.
In order to meet the scrutiny of regulatory requirements, these underwriters and institutional investors work in tandem with the company to ensure the proper structuring of the IPO. This can be a burdensome process at times, depending on which exchange the IPO is being offered on.
So why IPO?
To both raise a company’s profile and, of course, to hopefully raise money. The company is helped on both fronts by the sense of legitimacy that it receives when the muster is passed for the IPO.
With this legitimacy, comes a much higher likelihood that investors on the open market will be interested in buying the IPO stock and maybe even other services and products associated with the company.
While shares of an IPO are generally offered primarily to institutional investors, oftentimes a portion of the shares are retained to be made available to retail investors; the underwriter’s customers.
Additionally, many independent investors maintain the owning stock in a company equivocates to a certain degree of interest or control in the operations of the company.
However, this is not always the case. There exists something known as dual-class share structures which essentially gives one level of company shares more voting rights than others, as well as changing the dividend structures for separate class share structures.
Are IPOs all just a rigged game?
On the surface, the idea of an IPO certainly seems simplistic enough, but the reality is that the process of IPO’s can be complicated and difficult to fully see.
This goes double for retail investors unacquainted with the process of underwriting, who are too often carried away by the excitement of an IPO without going through the important process of cautious evaluation.
“Regardless of how successful a company may seem in the public eye, the fact of the matter is that not every company should go public”, explains Richard Meyer Cayne of Meyer International in Bangkok, Thailand. “In order to determine if an upcoming IPO is of worth, a great deal of evaluation has to be undertaken”.
Any investor interested in learning more about IPO’s or any investor with a specific IPO they are compelled to invest in should first consult with a trusted financial expert like Richard Meyer Cayne.
Richard Meyer Cayne
Richard Meyer Cayne of Asia Wealth Group Holdings, the Meyer Group, Meyer Asset Management and Meyer International Ltd has been involved in wealth management planning for decades. Originally born in Montreal Quebec, Canada, he later relocated to Tokyo, Japan for over 15 years and now resides in Bangkok, Thailand. While he runs the Meyer Group and serves as the high credibility CEO of Asia Wealth Group Holdings Ltd, a London, UK Stock Exchange-listed Financial Holdings Company, as well as the Managing Director of the Meyer Group of Companies www.meyerjapan.com. and has additionally been the managing director of multiple organizations that specialize in helping high net worth individuals with succession planning .
Having worked with clients all over the globe with everything from portfolios to bonds to mutual funds to offshore investing to investing in retirement for your golden years, Richard Cayne of Meyer International can help you invest the right way and protect your cash. Richard has been a financial advisor involved in wealth management planning solutions and asset management in Asia for over 25 years and while living in Tokyo, Japan, he assisted many high net-worth Japanese families create innovative international tax and wealth management planning solutions. The financial holding public company of which he is CEO can be seen at Asia Wealth Group Holdings Ltd or the stock exchange link:
https://www.aquis.eu/aquis-stock-exchange/member?securityidaqse=AWLP
Asia Wealth Group Holdings Ltd – Richard Cayne Thailand. Meyer Asset Management Ltd has been in the wealth management space since March 2000 and uses fundamental analysis along with modern portfolio theory.
His image worldwide as a professional advisor has been sterling and he maintains a firm command and understanding of all things finance-related.
