Precautions to take. As for companies already listed, it is strongly recommended to carry out a detailed analysis of the company. This can be based on the basic document, whose registration by the French Financial Markets Authority (AMF) marks the first step in any IPO project.
In this document, which can be consulted on the AMF website, the company describes its activities, its financial situation, its results, its strategy, its outlook, and the various risk factors (competition, regulatory, legal, financial, etc.). ) that she may be confronted with. As beautiful as the prospects of a company that is introduced on the stock market, we must also ensure that they are not overvalued at the time of introduction and be wary of operations (too) expected. The case of Facebook, introduced on May 18, 2012 at 38 dollars – a valuation of more than 100 billion dollars – and worth less than 25 dollars a year later, is in this respect emblematic. In this case, it was better to wait a little before buying shares of the world’s first social network. It may also be interesting to learn about the intentions of the historical shareholders. The fact that they take advantage of the IPO to free the capital and materialize their capital gains is not necessarily a bad sign in itself. But it is always more reassuring to know that they are committed to remaining in capital for a significant period of time, which shows that they continue to focus on the value creation potential of the company. How to participate ? To enter the stock market, a company first mandates a banking syndicate which will be responsible for placing a large part of its capital (80 to 90%) among institutional investors as part of a Global Placement procedure. Then, the company in question has the choice between 4 methods to subscribe individuals to its operation: the Firm Price Offer (OPF), the Open Price Offer (OPO), the Minimum Price Offer (OPM) and Direct Quotation. In fact, the Open Price Offer is currently used for the most part, while the Direct Quotation procedure is most often observed when securities are transferred from one market to another.