What is a pre-IPO?

Pre-IPO is capital raised by a company in the lead up to its planned IPO, generally priced at a discount to the IPO price.

Pre-IPOs are mostly offered without a full disclosure document such as a prospectus and are therefore only available to investors eligible under s708 investors of the Corporations Act 2001(Cth). 

When a company undertakes a pre-IPO raising, there is no guarantee when or if the company will undertake an IPO, or what the IPO share price will be. Investors should be aware that there is a higher risk involved with pre-IPOs. To reflect this, pre-IPOs are usually offered at a discount to the anticipated IPO price.

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