How does the success of your investment depend on the company's IPO?

IPO (Initial Public Offering) is the initial placement of shares on the stock exchange. An IPO confirms the company's status as a public company. It means that its shares can be freely traded on the market among a wide range of investors around the world.
But not all companies consider an IPO to be a successful solution.

For example, Huawei is the largest private business in China and the 15th largest IT giant in the world in terms of profit (https://www.statista.com/statistics/267966/brand-values-of-the-most-valuable-technology-brands-in-the-world/) in 2020. The management is not going to take the company to the stock exchange. An IPO is impractical for Huawei: why give a large stake in the company to one large investor?

Features of going public for an IPO:
Dependence on financial regulatory institutions and bureaucracy. A company entering into an IPO must regularly share documents and reports. To meet the stringent requirements of an IPO, a company must spend a lot of time, money, and human resources. At an early stage, it is more appropriate to use them to develop the company.
Instability. With unfavourable market trends, the share price can fall. It is difficult to guess the market mood, so there is a risk that the share price at the IPO may fall on the first trading day.
Often IT companies do not reach the IPO as successful projects and technologies are fully or partially bought out by a major player.

When will DigiU go public?
We will create a separate legal entity for each successfully monetised product in the DigiU ecosystem. When this particular product is in demand in the broad market and starts generating stable profits, only then the preparations for the IPO of this product will begin.

️ IMPORTANT!
There is no need to go public to distribute dividends, so investors do not suffer from the fact that the company is not going public.

We invite you to watch a webinar where CSPO Alexander I talks about the investment stages, project capitalisation, and the company's IPO launch in detail

To share the news, please enter your Personal Account!

Log in to your account