Through enquiries, private equity, crowdfunding or directly from the company
Any pre-IPO information contained herein is intended solely for qualified, experienced investors in accordance with the applicable national regulations and regulatory requirements. Not for publication, distribution or transmission in South Africa, Canada, Australia or Japan or in any other jurisdiction in which this would be prohibited.
The content of this page is intended for information purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities.
Risk Warning: Investments involve risks, including loss of capital.
The pre-IPO phase describes the period in which a private company raises capital through the sale of shares to selected, qualified investors such as institutional investors, venture capitalists or wealthy private individuals prior to its IPO. This happens before the company goes public through an initial public offering (IPO).
Pre-IPO shares are not yet publicly available. As a pre-IPO investor, you have the opportunity to participate in the growth of a company at an early stage and potentially benefit from substantial profits when the company goes public. In the case of highly sought-after IPOs, investors may not receive an allocation due to oversubscription.
This motivates many to invest before the IPO in order to secure shares at an early stage. Companies often seek capital before going public in order to finance their growth and attract strategic investors.
However, the exact timing of an IPO cannot always be reliably predicted. For this reason, pre-IPO investments are generally only aimed at experienced and professional investors who are familiar with the risks involved.
Investing in companies before they go public can be advantageous for several reasons.
Of course, the potential benefits should be weighed against the risks.
Pre-IPO investments tend to be less liquid, there is a risk that the company will not go public or that it will go at a price that is lower than expected.
Here are some of the benefits of investing early:
Pre-IPO investors have the opportunity to buy into a company before it goes public. If the company is successful after the IPO, the value of the shares can rise sharply.
As the pre-IPO valuation of a company is usually lower than after the IPO, there is a chance of substantial profits if the IPO is successful and the share increases in value on the stock exchange.
Access to pre-IPO shares is usually restricted to professional or institutional investors, providing an exclusive opportunity to invest in high-growth companies that are otherwise not publicly available.
Pre-IPO shares offer the opportunity to invest in companies that are still at an early stage of growth. This can diversify the portfolio and potentially generate high returns, especially in sectors that are undergoing strong development (e.g. technology, biotechnology).
Investors who invest early in a company may have the opportunity to exert a strategic influence on the company, whether through consultations or board seats, before the company goes public.
If pre-IPO shares are held for the long term, investors could benefit from significant capital gains once the company grows and stabilises after a successful IPO.
In some cases, pre-IPO investors receive preferential rights, such as discounts on the IPO price or the opportunity to acquire additional shares at a discounted price.
Through enquiries, private equity, crowdfunding or directly from the company
Comprehensive research and analyses are essential
Understand and agree investment conditions.
Ensuring compliance with legal regulations
(Pre-IPO offers are aimed exclusively at qualified and experienced investors who have the necessary expertise and knowledge of financial markets.)
