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What is IPO?

Initial public offering (IPO) is the procedure of the company offer its stocks to the general public for the first time. Initially, these stocks are offered on the primary market at the offering price set by the leading underwriter.

The primary market includes syndicates of investment banks and broker-dealers invited by the leading underwriter, which distribute stocks between institutional and individual investors. Distributing stocks at the offering price is called participation in the IPO. Participation in the IPO precedes the stock being listed on any of the stock markets for the first time.

Does IPO.one act as broker?

We are not a broker. IPO.one is a crowdfunding platform that operates under the Estonian legislation and offers technical solutions that make it possible to aggregate applications from Platform Participants and send an aggregated application to underwriters automatically.

It is possible to sell stocks before the Lock Up period ends if I need money urgently?

According to our agreements with the underwriters, it is prohibited to us to sell the stocks purchased on the OTC market sooner than in 93 calendar days. Earlier sale is only possible to the platform participants by redistributing stocks within the pool. At the same time, the early sale is always subject at a particular discount from the current market price. The discount for selling socks after 40 days amounts to 30%, after 60 days — to 20%, after 75 days — to 10%.

Who owns the stocks?

The securities are purchased on the OTC market at IPO prices on behalf of IPOCrowdwise OU. Being the platform member, you own a share in each investment pool according to the applications you have submitted for participating in particular IPOs.

What is a Lock Up period?

Lock Up is the minimum period for keeping stocks after purchasing them, when it is prohibited to investors who have bought stocks at IPO prices to sell them on the secondary market. This measure is taken to protect the market from the large investors’ manipulations.

Who can participate in IPO deals?

Anyone eager to increase their income through IPO deals.
Requirements for the platform participants:

  • over 18 years old;
  • investment funds from $1,000;
  • great mind to earn from IPO deals.
Is there any subscription fee for using IPO.one Platform?

There is no subscription fee. For opening and closing every transaction, IPO.one Platform charges a total 6% fee.

 

How to participate in an IPO?

If you are interested in participating in an IPO:

  1. Register on the IPO.one platform’s website.
  2. Complete the account verification by providing the required documents (a scanned copy of the last page of your passport and your photo).
  3. Study the company’s prospectus. This document contains information about the offer and the issuer, which the underwriter and the issuer decided to disclose for you to make an informed investment decision.
  4. Add funds to your Personal Account
  5. Send an indication of interest (an application). The application provides IPO.one with the information about the maximum amount of funds that you are ready to spend on purchasing the stocks.
  6. After the IPO has been priced, you will receive a distribution notification. After the stock distribution, you will find its results in your Personal Account in the My Investments section.

 

Can I change or withdraw an indication of interest?

You can withdraw an indication of interest (an application) before the end of the application acceptance period. The acceptance period ends 29 hours prior to the IPO date. After the stock distribution, it will be impossible to change or withdraw the indication.

How can I find out about new stock issues available at IPO.one?

IPO.one clients can find new stock issues in the upcoming IPOs schedule in the Upcoming IPOs section.

How can I find out how many stocks I have purchased and at what price?

You will be able to see how many stocks and at what price you have purchased under your application immediately after the stock distribution – usually, it is the next day after the IPO – in your personal account on IPO.one Platform’s website.