IPO & Introduction

cOrE · 1 IPO & Introduction Fri May 20, 2011 6:54 pm

cOrE

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what is the difference between an Initial Public Offering (IPO) and an Introduction..?

tkc · 2 Re: IPO & Introduction Fri May 20, 2011 7:07 pm

tkc

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http://forum.srilankaequity.com/t2927-stock-trading-ipo-s

2011_NewComer · 3 Re: IPO & Introduction Fri May 20, 2011 7:07 pm

2011_NewComer

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When listed by way of an Introduction, they directly list the shares on CSE. So we can buy those shares from the day it start trading.

http://www.invested.hk/invested/en/html/section/products/stocks/ipo/introduction.html

Akalanka · 4 Re: IPO & Introduction Fri May 20, 2011 8:16 pm

Akalanka

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tkc wrote:http://forum.srilankaequity.com/t2927-stock-trading-ipo-s

What is an 'Introduction'? Can I buy shares from an Introduction?
Introduction is different from an IPO although it is another method of entering the share market. Here the already issued shares of the company would be listed on the stock exchange. You cannot buy shares because shares are not offered to the public. But the company will issue an Introductory Document which you can obtain from your broker and if you are interested in the company you can buy shares in the secondary market.

I extracted this from the above link.
do have some questions.

1. Do we have to obtain the introductory documents from the company, like in the introduction of Swarnamahal Finance, we have to obtain it from The Swarnamahal.

2. How will be the cost

3. Will it be profitable

4. when will be the trading commence on.

I had never came across any introduction before , thats why i am asking. May be silly questions if possible just make a brif introduction.

thanks in advance. Very Happy

xhora · 5 Re: IPO & Introduction Fri May 20, 2011 8:43 pm

xhora

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1. They can be obtained from Stockbrokers or after they list on cse from CSE.lk
Eg: SENKADAGALA FINANCE COMPANY LIMITED (SFCL) can see their introductory document under key financials
http://www.cse.lk/cmt/upload_report_file/441_1300764643847.PDF

2 & 3. Cost is like any other stock. They offer you bid. it the two match transaction offer. How ever a referance price will be declared by the company you can take this price as a guide line and bid around it.
(in SFCL referance price was 20/= and also not that since it got listed not a single share has trade on secondary market and bidders even bid over Rs.200)

4. CSE will announce the trading commencing date.

There are quite a few "Introductions" on their way as you have seen in CSE daily announcement. There was introduction announcements from Chillaw Finance and Commercial Credit Ltd after SFCL but after that there are no further announcements from them. In 2010 Citizens Development Business Finance Ltd (CDB) was listed as an Introduction.

As oppose to IPO which is intended to raise new capital introduction is a exit route for existing shareholders.

Last edited by xhora on Fri May 20, 2011 8:53 pm; edited 3 times in total

Akalanka · 6 Re: IPO & Introduction Fri May 20, 2011 8:46 pm

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xhora wrote:1. They can be obtained from Stockbrokers or after they list on cse from CSE.lk
Eg: SENKADAGALA FINANCE COMPANY LIMITED (SFCL) can see their introductory document under key financials
http://www.cse.lk/cmt/upload_report_file/441_1300764643847.PDF

2 & 3. Cost is like any other stock. They offer you bid. it the two match transaction offer. How ever a referance price will be declared by the company you can take this price as a guide line and bid around it.
(in SFCL referance price was 20/= and also not that since it got listed not a single share has trade on secondary market)

4. CSE will announce the trading commencing date.

There are quite a few "Introductions" on their way as you have seen in CSE daily announcement. As oppose to IPO which is intended to raise new capital introduction is a exit route for existing shareholders.

thanks xhora got it clearly