An IPO is an Initial Public Offering and OPS an IPO. The difference is that in the IPO shares are sold existing and PAHO are sold expressly shares issued in a capital increase to be sold through PAHO.
In some IPOs combined an IPO and an OPS at once, that is part of the shares were already sold and split come from a capital increase.
When making requests for actions, revocations, etc.. investor is indifferent to the question of an IPO, OPS or a combination of both.
It is time to estimate the prospects of future revaluation of the company when it is important to consider whether IPO or OPS.
The main difference is that the company is asking PAHO new money to carry out some kind of expansion, new factories, opening new markets, etc.. This is usually the company will undergo a major change in its IPO, as it will become a business “different” that was before going public.
This means 2 things very important when assessing the company:It is imperative that new business value, which is difficult because still not been carried out.
The company’s recent past is very different from the current situation. The fundamentals (earnings, balance, etc..) Are not as useful in making an assessment horar as a company already listed. Of course to be studied, but that past must be combined with the expectations of new business.
It is not uncommon for companies that are “expensive” if you look only data from previous years but that, taking into account future business can be a good investment opportunity.
In general it is good that the IPO of a company is made through a PAHO. Usually this means the owners do not just rely on the future of the company (and not sell their shares) but also see opportunities for growth (hence the capital increase carried out to address these new business opportunities).Now this does not imply that all OPV are bad and all OPS are good.
It is one more factor to take into account when assessing the business and make the decision. There have been cases of OPV have been very good opportunities and PAHO also were out at high prices and assumed losses for investors who attended.
Always assess each individual case.Be very careful with those IPO in which owners sell 100% of the shares.
In these cases, of course, trying to sell to the highest price possible because they will not stay in the capital of the company and not care about their future evolution.
Also, if they sell 100% of the company may consider that the business is very mature and the best is past.
It should be noted that generally a company knows best, and their value, are the owners and managers.
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