Initial public offer or IPO meaning

What is the Panel proposing? The measures outlined in consultation paper PCP 2025/1 aim to revise the Takeover Code (the Code) in three specific areas, as set out in that paper. Some principal elements of the suggested changes to these areas are summarised below, for reference and clarity within the consultation. Dual class share structures A company operating a dual class share structure (DCSS) has capital made up of a class of voting ordinary shares alongside a class of shares—i.e., ‘class B’ or ‘special’ shares—carrying superior voting power or control relative to the company’s ordinary shares...

Introduction An initial public offering (IPO) is a company’s first sale of shares to the public. For more on what an IPO entails, see: IPO—Main market—overview. A business heading towards an IPO must assess the effect on any employee share arrangements it runs. This analysis should begin at the earliest planning stage, as the IPO structure may need to reflect share plan considerations. An IPO also creates a chance to launch new share schemes—often extending participation to all staff for the first time—and it is usually best for those arrangements to be established before the company’s shares are officially admitted to trading. Organisations may likewise wish to make awards or run an employee offer at the point of listing. Doing so demands advance preparation, with suitable disclosures built into the prospectus. This Practice Note outlines the key points that typically arise on employee incentives in an IPO and the steps that are commonly required. It covers both current and newly introduced schemes, points of timing ahead of admission, and...

This Practice Note aims to address key queries about IPOs, or initial public offers, on London’s equity markets, answering common questions. What is an IPO? IPO is short for initial public offering. It commonly describes the moment a company is first admitted to trading on a stock exchange—such as the London Stock Exchange (LSE)—and makes shares available to investors for the first time to raise capital. This is also called a stock market flotation or listing. However, in legal terms, ‘listing’ carries a more specific meaning—see the section titled What is the Official List? below for further details. In practice, an IPO fundraise typically entails issuing new shares to institutional investors, such as asset managers, pension funds and insurance firms. This may usually be accompanied by an offer of new shares to the general public as well. The fundraising structure can often also include existing shareholders selling some of their shares in the company to investors. The term IPO suggests that there will be some form of offering...

STOP PRESS : Significant changes to the UK prospectus framework took effect on 19 January 2026. The updated rules for public offers of securities and for admissions to trading in the UK are chiefly contained in the Public Offers and Admissions to Trading Regulations 2024, SI 2024/105 (the POATRs), and in the FCA sourcebook titled The Prospectus Rules: Admission to Trading on a Regulated Market (PRM). The UK Prospectus Regulation and the FCA Prospectus Regulation Rules have been revoked. The reforms aim to streamline capital raising and markedly lessen the circumstances in which a company must produce an FCA-approved prospectus for a subsequent issue of shares. For full details of the amendments, see Practice Note: UK prospectus regime reform. This Practice Note reflects the prospectus framework that applied before 19 January 2026. It examines the key methods and materials used to market an initial public offer (IPO) of securities on the Official List of the Financial Conduct Authority (FCA) and the Main Market for listed securities of the London...