What are pre IPO shares?
Pre IPO or Pre- Initial Public Offering is a private sale of large blocks of shares that are placed before the stock gets publicly listed in the stock market. This means that one can invest in companies before it gets listed in the stock market. Since every company needs funds to start and run their business, they get these funds through debts and equity. The buyers that buy these large blocks of shares before the shares are even made public are usually private equity firms or hedge funds, i.e. institutions that are willing to buy large stakes in a firm. The price of Pre IPO shares is decided by the demand and supply of the shares. Due to the large size of the investment and risks involved in such cases, the buyers who invest in pre-IPO shares usually get big discounts compared to the prospective price of that share.
- Pre IPO shares are sold at much lower prices due to bulk investment. When the same share finally gets listed in the retail market, its cost increases manifold.
- Investing in pre-IPO shares lets you get a single lot of shares of one company. Since IPO shares are very popular due to high media awareness, investors usually don’t get single IPO lots due to high demand.
Our company reduces your paperwork and documentation by providing you with all the essential data of all sorts of upcoming pre IPO shares sales. We also help you with your queries, and our team of experts guides you throughout the process.
How to buy?
The process of investing in Pre IPO shares is similar to buying listed company shares. The investor provides us with the margin amount and we look for the perfect shares suitable for your needs. On the day of the transaction, the shares are delivered to the investor’s demat account by the company.