{"id":2860,"date":"2020-03-23T17:55:57","date_gmt":"2020-03-23T17:55:57","guid":{"rendered":"http:\/\/localhost\/2020\/swoopMW20\/?post_type=knowledge-hub&#038;p=2860"},"modified":"2024-08-13T19:10:50","modified_gmt":"2024-08-13T19:10:50","slug":"initial-public-offering-ipo","status":"publish","type":"knowledge-hub","link":"https:\/\/swoopfunding.com\/za\/knowledge-hub\/initial-public-offering-ipo\/","title":{"rendered":"Initial public offering (IPO)"},"content":{"rendered":"<div class=\"aivoov-player-block\">\n\t<div class=\"read_this\">Read this article to me<\/div>\n\t\t\t<style>\n\t\t\t.plyr__controls .plyr__controls__item:first-child{\n\t\t\t\tbackground:#2e9c8e !important;\n\t\t\t}\n\t\t\t:root{\n\t\t\t--plyr-color-main:#2e9c8e;\n\t\t\t--plyr-audio-controls-background:#f0f2f4;\n\t\t\t--plyr-audio-control-color:#546a7b;\n\t\t\t}\n\t\t\t[data-plyr=\"mute\"]{color:#2e9c8e !important}\n\t\t\t.aivoov-text-color{color:#546a7b}\n\t\t<\/style> \n\t\t<div class=\"audio_player\">\n\t\t<audio class=\"js-player\" controls=\"\">\n\t\t\t<source src=\"https:\/\/monky-voice-over.s3.amazonaws.com\/aivoov\/781640cc-7bc1-4bbf-9492-22dedc19678b\/e3013fba-f61e-4263-82ed-018f88019862.mp3\" type=\"audio\/mp3\">\n\t\t\t<source src=\"https:\/\/monky-voice-over.s3.amazonaws.com\/aivoov\/781640cc-7bc1-4bbf-9492-22dedc19678b\/e3013fba-f61e-4263-82ed-018f88019862.mp3\" type=\"audio\/ogg\" \/>\n\t\t<\/audio> \n\t\t\t\t <div class=\"powerd_by aivoov-text-color\"><p><a rel=\"nofollow noopener\" target=\"_blank\" href=\"http:\/\/aivoov.com\/?um_source=plugin_powered_by\" style=\"color: inherit;\">Powered by AiVOOV<\/a><\/p><\/div>\n\t\t \n\t\t<\/div>\n\t\t<\/div>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n <div class=\"faq-accordion faq-accordion521\">\n <div class=\"card\">\n <div class=\"card-header\" id=\"heading0521\">\n <h5 class=\"mb-0\">\n <a class=\"btn btn-link\" data-toggle=\"collapse\" data-target=\"#collapse0521\" aria-expanded=\"true\" aria-controls=\"collapse0\">\n What is an Initial public offering (IPO)? <\/a>\n <\/h5>\n <\/div>\n\n <div id=\"collapse0521\" class=\"collapse show\" aria-labelledby=\"heading0\" data-parent=\".faq-accordion521\">\n <div class=\"card-body\">\n <p>An Initial Public Offering (IPO) marks the first time a company sells shares to the public. It\u2019s also known as \u2018listing\u2019 or \u2018floating\u2019 on the public markets \u2013 which in South Africa means a \u2018new issue\u2019 on the Johannesburg Stock Exchange.<\/p>\n<p>If you\u2019re lucky enough to have a revenue of more than R100m (or you\u2019ve reached unicorn status!), you might entertain the idea of an initial public offering (IPO).<\/p>\n<p>In a South African IPO, you can sell shares in your business via three public markets operated by the Johannesburg Stock Exchange:<\/p>\n<ul>\n<li><strong>Main Market (Premium)<\/strong> \u2013 for established companies (home of the FTSE 100 and 250 indices)<\/li>\n<li><strong>Main Market (High Growth Segment)<\/strong> \u2013 for high-growth companies that in time want to become Premium listed companies<\/li>\n<li><strong>Alternative Investment Market (AIM)<\/strong> \u2013 for smaller, growing businesses looking to scale up to mature businesses<\/li>\n<\/ul>\n <\/div>\n <\/div>\n <\/div>\n <div class=\"card\">\n <div class=\"card-header\" id=\"heading1521\">\n <h5 class=\"mb-0\">\n <a class=\"btn btn-link\" data-toggle=\"collapse\" data-target=\"#collapse1521\" aria-expanded=\"true\" aria-controls=\"collapse1\">\n Why choose an IPO? <\/a>\n <\/h5>\n <\/div>\n\n <div id=\"collapse1521\" class=\"collapse \" aria-labelledby=\"heading1\" data-parent=\".faq-accordion521\">\n <div class=\"card-body\">\n <p>An IPO is the first time a business raises finance publicly (before an IPO, you can only raise funds privately). Going public allows you to raise large sums of money from new investors (e.g., for expansion) and gain a large number of new shareholders while retaining control of your company. Existing (private) equity investors might drive an IPO because they\u2019re looking to sell their stakes in your business.<\/p>\n<p>An IPO is often called long-term, patient capital because once you have gone public, you can raise money time and time again, over years and even decades.<\/p>\n<p>Public companies have to disclose financial information regularly. This means keeping shareholders and the market (including your competitors) updated with half-yearly and annual results.<\/p>\n<p>For more information, you can read the Johannesburg Stock Exchange\u2019s <a href=\"https:\/\/www.jse.co.za\/regulation\/issuer-regulation\/listing-requirements\/listing-jse\" target=\"_blank\" rel=\"noreferrer noopener\">Guide<\/a> to listing.<\/p>\n <\/div>\n <\/div>\n <\/div>\n <div class=\"card\">\n <div class=\"card-header\" id=\"heading2521\">\n <h5 class=\"mb-0\">\n <a class=\"btn btn-link\" data-toggle=\"collapse\" data-target=\"#collapse2521\" aria-expanded=\"true\" aria-controls=\"collapse2\">\n Why go public? <\/a>\n <\/h5>\n <\/div>\n\n <div id=\"collapse2521\" class=\"collapse \" aria-labelledby=\"heading2\" data-parent=\".faq-accordion521\">\n <div class=\"card-body\">\n <p>Getting to an IPO stage is a milestone. Being a publicly traded company means your business has raised its profile to \u2018blue-chip\u2019 status.<\/p>\n<p>If you want to raise capital to fund further growth or finance existing debt, being listed on a stock exchange opens your business to a vast number of potential investors with an unlimited number of financing options.<\/p>\n<p>Also, an IPO is an excellent way of monetizing assets.<\/p>\n <\/div>\n <\/div>\n <\/div>\n <div class=\"card\">\n <div class=\"card-header\" id=\"heading3521\">\n <h5 class=\"mb-0\">\n <a class=\"btn btn-link\" data-toggle=\"collapse\" data-target=\"#collapse3521\" aria-expanded=\"true\" aria-controls=\"collapse3\">\n Have you also considered? <\/a>\n <\/h5>\n <\/div>\n\n <div id=\"collapse3521\" class=\"collapse \" aria-labelledby=\"heading3\" data-parent=\".faq-accordion521\">\n <div class=\"card-body\">\n <p><a href=\"https:\/\/swoopfunding.com\/za\/knowledge-hub\/equity-finance\">Equity financing<\/a> &#8211; refers to the capital an external investor injects into your business in return for a share of ownership (equity) and\/or some control of the business. Equity finance investors therefore have a claim on your future earnings but, in contrast to a loan, you don\u2019t pay any interest \u2013 nor do you have to repay capital. If you opt for equity financing, you\u2019ll sell a stake in your business in return for funds.<\/p>\n<p><a href=\"https:\/\/swoopfunding.com\/za\/knowledge-hub\/debt-financing\">Debt financing<\/a> &#8211; Debt financing is a broad term that covers any type of <a href=\"https:\/\/swoopfunding.com\/za\/knowledge-hub\/business-loans\">loan<\/a> that you pay back, with interest, over a set period of time. A loan can come either from a lender \u2013 see <a href=\"https:\/\/swoopfunding.com\/za\/knowledge-hub\/business-loans\">business loans<\/a> \u2013 or from selling bonds to the public.<\/p>\n<p><a href=\"https:\/\/swoopfunding.com\/za\/knowledge-hub\/private-equity\">Private equity<\/a> &#8211; is a type of <a href=\"https:\/\/swoopfunding.com\/za\/knowledge-hub\/equity-finance\">equity financing<\/a> suitable for established private businesses. Private Equity funds give your business money in return for a large or controlling share in your business.<\/p>\n<p><a href=\"https:\/\/swoopfunding.com\/za\/knowledge-hub\/venture-capital\">Venture capital<\/a> &#8211; is financing given to startups and early-stage businesses. Venture capital funds look to invest larger sums of money than <a href=\"https:\/\/swoopfunding.com\/za\/knowledge-hub\/business-angels\">business angels<\/a> \u2013 typically more than R500,000 \u2013 in return for an equity stake. Venture capital is most suited to high-growth businesses with long-term growth potential, i.e. those destined for sale or public listing (IPO).<\/p>\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n \n <script type=\"application\/ld+json\">\n    {\n        \"@context\": \"https:\/\/schema.org\",\n        \"@type\": \"FAQPage\",\n        \"mainEntity\": [\n                                {\n                \"@type\": \"Question\",\n                \"name\": \"What is an Initial public offering (IPO)?\",\n                \"acceptedAnswer\": {\n                    \"@type\": \"Answer\",\n                    \"text\": \"An Initial Public Offering (IPO) marks the first time a company sells shares to the public. It\u2019s also known as \u2018listing\u2019 or \u2018floating\u2019 on the public markets \u2013 which in South Africa means a \u2018new issue\u2019 on the Johannesburg Stock Exchange. 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A loan can come either from a lender \u2013 see business loans \u2013 or from selling bonds to the public. Private equity &#8211; is a type of equity financing suitable for established private businesses. Private Equity funds give your business money in return for a large or controlling share in your business. Venture capital &#8211; is financing given to startups and early-stage businesses. Venture capital funds look to invest larger sums of money than business angels \u2013 typically more than R500,000 \u2013 in return for an equity stake. Venture capital is most suited to high-growth businesses with long-term growth potential, i.e. those destined for sale or public listing (IPO).\"\n                }\n            }          ]\n    }\n    <\/script>\n \n","protected":false},"excerpt":{"rendered":"","protected":false},"author":39,"menu_order":28,"template":"","segment":[299],"class_list":["post-2860","knowledge-hub","type-knowledge-hub","status-publish","hentry","segment-equity-finance"],"acf":[],"featured_image_urls_v2":{"full":"","thumbnail":"","medium":"","medium_large":"","large":"","1536x1536":"","2048x2048":"","image_blog":"","image_podcast":"","image_banking":"","image_blog_internal":"","image_blog_medium":"","image_single_banking":""},"post_excerpt_stackable_v2":"<p>Read this article to me Powered by AiVOOV What is an Initial public offering (IPO)? An Initial Public Offering (IPO) marks the first time a company sells shares to the public. It\u2019s also known as \u2018listing\u2019 or \u2018floating\u2019 on the public markets \u2013 which in South Africa means a \u2018new issue\u2019 on the Johannesburg Stock Exchange. If you\u2019re lucky enough to have a revenue of more than R100m (or you\u2019ve reached unicorn status!), you might entertain the idea of an initial public offering (IPO). In a South African IPO, you can sell shares in your business via three public markets&hellip;<\/p>\n","category_list_v2":"","author_info_v2":{"name":"Alexandre Colucci","url":"https:\/\/swoopfunding.com\/za\/author\/alexcolucci\/"},"comments_num_v2":"0 comments","_links":{"self":[{"href":"https:\/\/swoopfunding.com\/za\/wp-json\/wp\/v2\/knowledge-hub\/2860"}],"collection":[{"href":"https:\/\/swoopfunding.com\/za\/wp-json\/wp\/v2\/knowledge-hub"}],"about":[{"href":"https:\/\/swoopfunding.com\/za\/wp-json\/wp\/v2\/types\/knowledge-hub"}],"author":[{"embeddable":true,"href":"https:\/\/swoopfunding.com\/za\/wp-json\/wp\/v2\/users\/39"}],"version-history":[{"count":0,"href":"https:\/\/swoopfunding.com\/za\/wp-json\/wp\/v2\/knowledge-hub\/2860\/revisions"}],"wp:attachment":[{"href":"https:\/\/swoopfunding.com\/za\/wp-json\/wp\/v2\/media?parent=2860"}],"wp:term":[{"taxonomy":"segment","embeddable":true,"href":"https:\/\/swoopfunding.com\/za\/wp-json\/wp\/v2\/segment?post=2860"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}