Some times you or your company interest to buy shares in any companies listed in Colombo stock market and you don’t know how to do it. There are two major methods to buy shares on Colombo stock market. First one is Primary Market and other is secondary market. The main idea behind to put any company share on public is collecting capital to that company. So company are tend to do Initial Public Offer (IPO) to directly collect capital to company by selling shares to general public through in Colombo stock market. A company who interest to sell their shares in to general public is do this IPO on large scale and this is the first time that public and Company meet and get the ownership of that company .
General public have no idea on company’s performance who try to enter in to Colombo stock market. Since there is no details available pubic, you need to get Company Prospectus before applying IPO. From this Company Prospectus you can have some idea about this company performance. This Company Prospectus can get from any stock brokers or sometimes form public banks. If the company who going to do IPO has great reputation or attractive profits from past, there may be huge competition to acquire share.
Sometimes the quantity shares which request general public from IPO may increase the actual number of share prepare to release on market. So company got the decision power on how much share must give to individual. If any company prepares to do Initial Public Offer (IPO) they put advertisement on news paper and advertise on other media as well. The procedure that you need to do to takeover this IPO shares is also mentioned in this advertisement. If you have interest to buy shares on IPO what you need to do is collect company prospectus and the application form stock broker, fill that application in proper manner and hand over form with money or cheque to your stock broker company before closing date.
As I mentioned before the number of request share from general public can increase available shares on IPO. So on that ocations company may decide how in what base the IPO shares to be distributed. Some times you may not get any share or the number of share you get might less than the number of share your request. If that kind of scenario happens IPO Company pay the money back from cheque to the shares which you didn’t received. If you have any idea to take share from IPO following thing need to consider. Most of general public doesn’t have knowledge to analyze the company performance or some time you do not have a time to do it. So go for your stock broker company and ask them to give advice regarding this Initial Public Offer (IPO). They are also willing to give their advice on scientific base.