EOI vs. IPO: Your Guide to Getting In Early on New Listings

Written by TeamEasy | Nov 14, 2024 5:00:00 AM

If you’re considering investing in Boxer as it heads to the stock market, you might’ve seen terms like Expression of Interest (EOI) and Initial Public Offering (IPO). Both are key steps in Boxer's journey to becoming a public company, but what’s the difference? Here’s a quick guide.

Summary:

EOI = “I’m interested!” (non-binding). EOIs help companies see potential interest in shares, but do not guarantee an allocation of shares.
IPO = “Here’s your chance to invest!” The IPO is the official launch of shares on the stock exchange, letting anyone buy and trade them.

What’s an EOI (Expression of Interest)?
An EOI is a way for investors to show interest in buying shares. It’s essentially a non-obligatory “I’m interested!” that allows potential investors to express interest in future stock purchases. For companies and their underwriters, EOIs help gauge market demand and plan for a smoother, more efficient offering.

What’s an IPO (Initial Public Offering)?
The IPO is the formal event where shares are made available to the public for the first time on a stock exchange. Unlike EOIs, an IPO is a regulated process where shares are actually offered to the market, allowing investors to buy and trade them openly. For companies, the IPO represents a significant milestone as they transition to publicly traded status.

EOI vs. IPO: The Key Difference
Think of it this way:

EOI = “I’m interested!” (non-binding)
IPO = “Shares are officially open for trading!"

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