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Blank check offering |
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Blank check offeringAn initial public offering by a company whose business activities are undefined and therefore peculative.Blank check offering Similar MatchesInitial public offeringInitial public offeringThe first offering of a company's shares to the public known in the UK as a flotation. IPO was originally an American term but is increasingly being used across all world markets The shares offered may be existing ones held privately, or the company may issue new shares to offer to the public.There can be lots of reasons why companies offer shares to the public:the directors want to raise new capital for the companythe directors want to widen the shareholder base of the companythe shareholders want to have a liquid market in which to trade their sharesthe directors want to be able to use 'paper' to make acquisitionsthe directors want the publicity that a public listing bringsIn recent years there has been a tendency for companies to list on the market by a private placing of shares to institutions rather than public offerings. This is partly because the costs of a placing are far lower than an offer for sale, and partly it is because in 1996 the Stock Exchange scrapped its rule requiring that new issues worth more than £50m should offer a proportion to the public.Whatever the reason, it rankles that members of the public are so often denied the chance to 'get in on the ground floor' while institutions clean up. The internet may reverse the trend, however. There have already been several online flotations in the USA and Europe in which private investors get full participation rights. These are sometimes referred to as EPOs (Electronic Public Offerings).One of the advantages of buying shares in IPOs is that they do not attract Stamp Duty (0.5% tax normally paid on share purchases) and since you can buy direct from the issuing company you can avoid broker's commission. Dual syndicate equity offeringDual syndicate equity offeringAn international equity placement that splits the offering is split into two branches - domestic and foreign - and each grantee is handled by a separate lead manager. Secondary distribution or offeringSecondary distribution or offeringPublic sale of previously issued securities held by large investors, usually corporations or institutions, as distinguished from a primary distribution, where the seller is the issuing corporation. The sale is handled off the NYSE, by a securities firm or a group of firms, and the shares are usually offered at a fixed price related to the current market price of the stock. Registered secondary offeringRegistered secondary offeringA reoffering of a large block of securities, previously publicly issued, by the holder of a large portion of some corporation through an investment firm. Public offering pricePublic offering priceThe price of a new issue of issue at the time that the issue is offered to the public. Further SuggestionsPublic offeringShelf offering rights offering Reoffering yield Rights offering Public securities offering Secondary Offering Intrastate offering electronic public offering Targeted registered offerings public offering Rights Offering Split offering Offering memorandum Underwritten offering Offering scale Offering date Offering statement Competitive offering Offerings |
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