An Initial Public Offering, or IPO, allows investors to subscribe to shares in a company before or around the time the company becomes publicly listed on a stock exchange.
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This article offers investors a complete guide to IPOs on Thndr, including how IPO subscriptions work, how IPO orders are placed, how allocation is determined, how wallet balances are handled, and when refunds are returned.

An IPO, or Initial Public Offering, is the process through which a private company offers shares to the public for the first time. An IPO allows public investors to buy shares and become partial owners of the company.

Companies may launch an IPO to raise capital for growth, repay debt, allow early investors to sell part of their ownership, or create a public market for company shares.

Most IPOs include two main tranches: a public offering and a private offering.

A public offering is open to retail investors. The company sets the subscription rules, including the minimum subscription amount, maximum subscription amount, number of shares available, subscription period, and offer price. These details are disclosed in the IPO offering terms.

A private offering is usually reserved for institutional investors or larger investors. In some IPOs, Thndr may support participation in the private offering. If private offering participation is available through Thndr, Thndr will send eligible investors a subscription form to complete and submit.

The offer price is the fixed price at which IPO shares are sold during the subscription period. The company and the company’s advisors set the offer price based on company financials, market conditions, and investor demand.

An independent financial advisor, or IFA, may also publish a fair value estimate for the company’s shares. Investors can compare the independent fair value estimate with the IPO offer price to assess potential upside or downside.

IPO subscription means that an investor is applying to buy shares. IPO subscription does not guarantee that the investor will receive the full number of requested shares.

Final IPO allocation depends on investor demand, the number of shares available, and the allocation rules announced for the offering.

If demand is higher than the number of available shares, investors may receive fewer shares than requested.

IPO oversubscription happens when total investor demand exceeds the number of shares available in the offering.

When an IPO is oversubscribed, each investor may receive fewer shares than requested. The remaining unallocated money is refunded to the investor’s Thndr wallet.

Oversubscription is common in popular IPOs. Investors should not assume that the full requested IPO order will be allocated.

IPO orders are usually processed after the subscription period ends.

The subscription period is the timeframe during which investors can submit IPO orders before the offering closes.

IPO order execution usually takes up to 5 business days after the end of the subscription period.

Trading begins after the stock exchange announces the official listing date. Thndr will notify investors when information about the listing date and trading start date becomes available.

A stabilization fund is a protection mechanism included in some IPOs. If the stock price falls below the IPO offer price within the first 30 days of trading, eligible investors may be able to return the allocated shares at the original offer price and receive the invested amount back.

A stabilization fund usually applies only to shares purchased through the public offering, and generally does not apply to shares purchased through the private offering.

The protection is limited to the initial stabilization period, which is typically the first 30 days of trading, and is intended to cover downside risk only during that timeframe.

Investors can sell IPO shares on the first trading day when first-day selling is supported by the exchange and the offering terms.

Free float is the percentage of a company’s shares available for public trading after the IPO.

A higher free float usually means more liquidity in the market. Higher liquidity can make buying and selling shares easier.

A lower free float can reduce liquidity and may lead to higher price volatility.

For step-by-step instructions on how to subscribe to an IPO, place an IPO order, cancel an IPO order, and manage IPO participation through the Thndr app, see: How to Subscribe to an IPO on Thndr.