IPO Basics — Should You Apply?
7/6/2026
fundamentals
guide
An IPO is a company selling shares to the public for the first time — priced by bankers paid to maximise the SELLER'S outcome.
Level by level
Beginner
Listing-day pops make headlines; the quiet statistic is how many IPOs trade below issue price within a year. Hype is not analysis.
Intermediate
Read the prospectus basics: who's selling (fresh issue funds growth; pure offer-for-sale funds exits), what the money is for, and the profit history.
Advanced
Lock-in expiries (anchor and promoter) create supply cliffs months after listing — mark those dates. Wait-two-quarters filters most IPO disasters at the cost of some fireworks.
Common mistakes
- Applying because the grey-market premium is loud
- Ignoring who is selling and why
Practise & tools
_Educational content only — not financial advice. Historical behaviour never guarantees future results._
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