Take note of the stages of IPO Stocks that you must know!

For those of you who have been in the stock market for a long time, you may already be familiar with the term stock IPO. However, if you don't know what a stock IPO is, don't worry because now you can get to know it.

Before getting to know the term stock IPO, of course you already know about GOTO shares sold for Rp338 aka very cheap price! Well, that price is included in the stock IPO offer, you know!

Come on, find out what a stock IPO is and how it works in the capital market!

What is a stock IPO?

Quoted from various sources, stock IPO or initial public offering is a way for a company to sell part or all of its shares to become a public company through an initial market offering mechanism. The ownership of these shares can be traded in the stock capital market.

In short, this stock IPO is an initial offering of a company's shares to the general public.

Quoted from Independent Securities Also, this stock IPO is usually the process of entering into the process of selling company shares directly to investors in the secondary capital market before entering the Indonesia Stock Exchange (IDX).

This stock IPO is often hunted by investors because it is a fairly profitable cash field and stock IPOs will also usually be sold on a limited basis.

Stages of offering IPO shares by companies

Before entering into the IPO offer, there are five stages which companies must follow. 

• First, the company must obtain approval from stakeholder and underwriters to assist in the IPO offering of shares.
• Second, applying for or listing shares to be sold on the Indonesia Stock Exchange and after that registering with the Financial Services Authority (OJK). Later, these two institutions will verify all the data submitted and later the financial condition and activities of the company will be submitted to the public through a prospectus process.
• If it has obtained OJK permission, the company can publish a light prospectus and conduct a public exposure and this is where the company will open the price of the shares to be sold to all investors through an initial offering (bookbuilding).
• After making an initial offering, the company can also conduct a public offering of shares or Offering to the general public.
• After the offering is complete, the company will get approval from the IDX to announce the listing of the company's shares and will be given a share code (tricker) which will later be used in trading shares on the stock exchange.
• The distribution of shares to investors will be done electronically through KSEI (Indonesian Central Securities Depository).

Things to pay attention to in the Stock IPO

In the stock IPO offering, there are several notes that investors must pay attention to to get the appropriate stock IPO price.

• During the initial offering, investors can fill in the desired stock price according to the price range announced by the company.
• Determination of this share price must be done by looking at the interest in buying shares during the initial offering period from various investors.
• If the interest in selling shares is high, the company can sell shares at a high price as well.
• The price of shares offered to the general public or the future Offering is a fixed price that cannot be changed.
• If the demand for shares from investors is higher than the number of shares offered, an allotment mechanism will be carried out.
• Meanwhile, if investors do not get the shares, the paid-in capital will be returned.
• The initial offer can also only be ordered through a securities company or stock broker underwriter of the shares.

Currently, stock IPO offerings can also be made through e-IPO, namely the Electronic Indonesia Public Offering which acts as an electronic means to assist the initial public offering of shares. You can also see how to buy a stock IPO in the article "Eyeing IPO Shares? Learn how to buy it so you don't make a wrong step”.

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