The company’s shares will then be on the market at the set offering for around 1 week before the closing of share sales to the public, known as ‘unconditional full trading’ or market admission. Giving shares the ability to unconditional be traded on the stock exchange. This is only if the IPO has the involvement of the public and it’s not completely privately invested. At Closing the shares are delivered to investors, at the pricing of the offering. It is then the duty of the underwriter to issue the various documents to these shareholders who bought shares.
Private Investors who have shown interest in IPO shares may choose to buy at the initial offering price, to then sell the shares immediately to make a quick profit during early trading, known as ‘Stagging’.
If the IPO goes to plan the company will make the transaction from Private to Public and in the process gain the necessary funds to fulfil its future plans.