What is an Upcoming IPO?

Companies that have submitted their DRHP to the stock exchange and are expected to open in the coming weeks or months are known as upcoming IPOs. 

IPO is a mechanism through which a private company is floated in the stock exchange through sale of its securities. Outsourcing of shares involves the listing of the company’s shares in the market with the help of investment banks and may entail strict laws in marketing and other legal issues. It means offering ownership rights of the company in the form of ratios of stocks to the investors.

Because the initial public offering is usually open only for big investors such as hedge funds and banks, the average investor can seldom purchase stock early. Though, retail investors can buy shares immediately after the IPO has been floated into the market.

There are two major classifications of markets in the world namely the primary and the secondary markets. Primary issues are those which are floated in the IPOs which are in the process of their offering to the public.