Mobile company Xiaomi recently launched its Initial Public Offer for company shares in the market and the Indian stock exchange witnessed an unprecedented boost within days of the announcement. The Initial Public Offerings have caught some solid ground in India recently and Xiaomi became the newest entrant to the group of companies that have made their shares open to the public to invest in.
The company master data on Tofler reflects a steep rise in the company value whenever an IPO was launched. An Initial Public Offer is any corporation’s first offer to sell its stock to the public. The launch of an IPO by Xiaomi is expected to give rise to similar tendencies among other mobile companies as well. The last year saw a momentous increase in IPOs launched by companies in the Indian Stock exchange with over 90 companies making an initial public offer. According to the company directors at Xioami, the launch of the IPO could not have come at a better time than this. The market conditions are favourable for making the company shares public for investment and purchase, they said. The company stocks purchased by the public keep in circulation within the stock exchange and have been major garners of fund for companies of value in the past.
Given that the funds generated by the IPOs in circulation in the Indian and global stock exchange exceeded over $4 billion, a good amount is expected to flow into the stocks of the mobile company.
The workers are expected to benefit all the same from these IPOs.
The IPO launched by Xiaomi provisions for the workers to buy the company stocks as well. That essentially means that they will have a share in the company funds and profits in the stock exchange market. The company directors justify the move backing their decision on grounds of workers being their most faithful assets. They said that they would rather see their workers prosper along with the company than subject their stocks to outside intervention. The workers can invest and buy the company stocks offered in the exchange market. It essentially acts as a symbiotic relationship where the workers’ profit from the company’s shares soaring in the market and in turn help the company raise funds. The value in the market generated by this IPO launch is expected to boost pricing of the company shares in the stock exchange.
A good IPO gives the buyers a reason to invest and it’s important that the pricing is profitable according to the time of the IPO launch. An IPO correctly made helps your company retain the value of its shares as well as generate some real fund for expansion and other operations while using and leveraging the buyer’s money to do the job. By making IP offers to its own employees, Xioami is playing a real visionary and exhibiting a rare far-sightedness where the company stocks stay within the company, the workers run a chance of becoming millionaires, and the funds keep flowing in.