IPO Insurance
What is IPO Insurance?
It is sometimes referred to as Prospectus Liability Insurance or Public Offering Securities Insurance (POSI) . It is a multi-year policy the seeks to protect corporation and its directors against exposures arising from an initial public offering or error or misstatement in the prospectus.
What is an Initial Public Offering?
An initial public offering (IPO) is the first time that the stock of a private company is offered to the public. IPOs are often issued by smaller, younger companies seeking capital to expand, but they can also be done by large privately owned companies looking to become publicly traded. In an IPO, the issuer obtains the assistance of an underwriting firm, which helps determine what type of security to issue, the best offering price, the amount of shares to be issued and the time to bring it to market. (Investopedia)
What is a Prospectus?
A prospectus is a formal legal document that is required by and filed with the Securities and Exchange Commission that provides details about an investment offering for sale to the public. The preliminary prospectus is the first offering document provided by a security issuer and includes most of the details of the business and transaction in question; the final prospectus, containing finalized background information including such details as the exact number of shares/certificates issued and the precise offering price, is printed after the deal has been made effective. In the case of mutual funds, a fund prospectus contains details on its objectives, investment strategies, risks, performance, distribution policy, fees and expenses, and fund management. (Investopedia)
It is sometimes referred to as Prospectus Liability Insurance or Public Offering Securities Insurance (POSI) . It is a multi-year policy the seeks to protect corporation and its directors against exposures arising from an initial public offering or error or misstatement in the prospectus.
What is an Initial Public Offering?
An initial public offering (IPO) is the first time that the stock of a private company is offered to the public. IPOs are often issued by smaller, younger companies seeking capital to expand, but they can also be done by large privately owned companies looking to become publicly traded. In an IPO, the issuer obtains the assistance of an underwriting firm, which helps determine what type of security to issue, the best offering price, the amount of shares to be issued and the time to bring it to market. (Investopedia)
What is a Prospectus?
A prospectus is a formal legal document that is required by and filed with the Securities and Exchange Commission that provides details about an investment offering for sale to the public. The preliminary prospectus is the first offering document provided by a security issuer and includes most of the details of the business and transaction in question; the final prospectus, containing finalized background information including such details as the exact number of shares/certificates issued and the precise offering price, is printed after the deal has been made effective. In the case of mutual funds, a fund prospectus contains details on its objectives, investment strategies, risks, performance, distribution policy, fees and expenses, and fund management. (Investopedia)
Trivia:
PSE only has 269 listed companies compared to Bursa Malaysia (901), Singapore Exchange (753), Stock Exchange of Thailand (667), Indonesian Stock Exchange (555), Hanoi Stock Exchange (379) and Ho Chi Minh Exchange (340). (Source: Inquirer.net)
Top Ten Biggest global IPO
1. Alibaba Holdings Group (NYSE:BABA) , a diversified online ecommerce company based in China, went public on September 18, 2014 at a whopping $21.8 billion. Four days later, underwriters exercised an option to sell more shares, bringing the total IPO to $25 billion. Although technology companies traditionally list on NASDAQ, Alibaba chose the New York Stock Exchange for its debut and used underwriting primarily from Credit Suisse.
2. ABC Bank, otherwise known as the Agricultural Bank of China (listed on the Shanghai Stock Exchange and the Hong Kong Stock Exchange), is one of China’s five largest banks. ABC Bank went public on July 7, 2010 at an initial offering raising $19.228 billion. The follow-on greenshoe offerings from underwriter Goldman Sachs Asia brought the total to over $22 billion.
3. ICBC Bank, or Industrial and Commercial Bank of China (listed on the Shanghai Stock Exchange and the Hong Kong Stock Exchange), went public on October 20, 2006, fetching a total of $19.092 billion. At that time, ICBC Bank was the largest mainland Chinese bank and the third large Chinese bank to go public.
4. NTT DoCoMo (NYSE:DCM), a Tokyo‑based telecommunications player, went to the public market on October 22, 1998, raising $18.099 billion. Underwritten by Goldman Sachs Asia, this IPO launched NTT to the third largest market cap for a Japanese company.
5. Visa Inc. (NYSE:V) ounds out the top five. This debit and credit card processing company entered the public market on March 18, 2008, and raised $17.864 billion—no small feat during a global financial crisis. It is the largest IPO for any U.S.‑based company.
6. AIA (OTC:AAIGF), a Hong Kong-based investment and insurance company, was offered to the public on October 21, 2010. It raised $17.816 billion and become the third Hong Kong-based financial company on this top 10 IPO list.
7. Enel S.p.A.(OTC:ENLAY) listed on the New York Stock Exchange on November 1, 1999 after it raised $16.452 billion. This Italian company competes in the gas and electric market in Europe and the Americas. It is the only utility company on the top 10 IPO list.
8. Facebook (NASDAQ:FB) was one of the most-hyped IPOs in history. It listed on May 1, 2012 and raised $16.007 billion. This social media technology company's launch was riddled with trading issues and questionable information-sharing accusations. Nevertheless, it still became the largest technology IPO in U.S. history.
9. General Motors (NYSE:GM) debuted on November 17, 2010 after emerging from a bankruptcy filing one year earlier. This U.S.-based car manufacturer raised $15.774 billion in its initial public offering.
10. Nippon Tel (NYSE:NTT) is a Tokyo-based telecommunication provider. This is the oldest IPO on this list. The company raised $15.301 billion on February 9, 1987.
(Source: Investopedia)
2. ABC Bank, otherwise known as the Agricultural Bank of China (listed on the Shanghai Stock Exchange and the Hong Kong Stock Exchange), is one of China’s five largest banks. ABC Bank went public on July 7, 2010 at an initial offering raising $19.228 billion. The follow-on greenshoe offerings from underwriter Goldman Sachs Asia brought the total to over $22 billion.
3. ICBC Bank, or Industrial and Commercial Bank of China (listed on the Shanghai Stock Exchange and the Hong Kong Stock Exchange), went public on October 20, 2006, fetching a total of $19.092 billion. At that time, ICBC Bank was the largest mainland Chinese bank and the third large Chinese bank to go public.
4. NTT DoCoMo (NYSE:DCM), a Tokyo‑based telecommunications player, went to the public market on October 22, 1998, raising $18.099 billion. Underwritten by Goldman Sachs Asia, this IPO launched NTT to the third largest market cap for a Japanese company.
5. Visa Inc. (NYSE:V) ounds out the top five. This debit and credit card processing company entered the public market on March 18, 2008, and raised $17.864 billion—no small feat during a global financial crisis. It is the largest IPO for any U.S.‑based company.
6. AIA (OTC:AAIGF), a Hong Kong-based investment and insurance company, was offered to the public on October 21, 2010. It raised $17.816 billion and become the third Hong Kong-based financial company on this top 10 IPO list.
7. Enel S.p.A.(OTC:ENLAY) listed on the New York Stock Exchange on November 1, 1999 after it raised $16.452 billion. This Italian company competes in the gas and electric market in Europe and the Americas. It is the only utility company on the top 10 IPO list.
8. Facebook (NASDAQ:FB) was one of the most-hyped IPOs in history. It listed on May 1, 2012 and raised $16.007 billion. This social media technology company's launch was riddled with trading issues and questionable information-sharing accusations. Nevertheless, it still became the largest technology IPO in U.S. history.
9. General Motors (NYSE:GM) debuted on November 17, 2010 after emerging from a bankruptcy filing one year earlier. This U.S.-based car manufacturer raised $15.774 billion in its initial public offering.
10. Nippon Tel (NYSE:NTT) is a Tokyo-based telecommunication provider. This is the oldest IPO on this list. The company raised $15.301 billion on February 9, 1987.
(Source: Investopedia)