IPO (Initial Public Offering)

What Are Capital Markets?

from Capital Markets

Capital markets are the venues and mechanisms through which companies and governments raise long-term funding by issuing securities — shares or debt instruments — to investors. The primary market is where new securities are created and sold for the first time (an IPO or a bond issuance), while the secondary market is where existing securities are traded between investors (the London Stock Exchange, for instance). The distinction matters because lawyers advising on a primary market transaction focus on disclosure, structuring, and regulatory compliance, whereas secondary market work centres on trading rules, market abuse, and ongoing obligations.

Equity Capital Markets

from Capital Markets

An initial public offering (IPO) is the process by which a private company lists its shares on a stock exchange for the first time. The company appoints underwriters (investment banks) who commit to buying any unsold shares, guaranteeing the fundraise. A detailed prospectus must be prepared and approved by the FCA, disclosing the company's business, financials, risks, and management. The bookbuilding process gauges investor demand at various price points before the final offer price is set. Beyond IPOs, listed companies may raise additional equity through rights issues (offering existing shareholders new shares pro rata) or placings (selling new shares to institutional investors).