IPD - IRAIC SME Stock Exchange

In a private and decentralized initial public debt (IPD), investors are given the opportunity to purchase shares of the issuing company, making them shareholders through their financial investment. Shareholders, based on their stake, receive entitlements such as dividends and bonus shares, determined by the company's earnings and management statements. Traditionally, shares have demonstrated superior returns compared to other asset classes.

Accordingly, it is advisable for investors to include a proportion of shares in their portfolio. However, shares carry inherent risks, as share prices can be volatile due to various economic and non-economic factors, often without clear triggers. However, in the long term, participating in the stock market allows for wealth creation by investing in valuable shares of reputable companies with strong business models and financial performance.

Investing in private and decentralized initial public debt (IPD) presents investors with a variety of potential advantages. Below are several benefits of investing in an IPD.

Potential benefits of investing in an IPD include the potential for listing gains if the company debuts at a price higher than the offering price. If an investor, who has requested shares at the offering price, receives them and the company opens at a higher price, significant profits can be made.

Following a company's private, decentralized debut, investors gain the ability to trade its shares on the open ISSE. ISSE shares offer investors the flexibility to buy or sell shares at any time, ensuring liquidity.

ISSE has applied lax rules to ensure that small retail investors have a fair chance at IPD share allocations. In the event of oversubscription, ISSE requires that, subject to availability, all retail investors receive at least one lot of shares. If allocation of individual lots is not feasible, a lottery system is employed for the equitable distribution of IPD shares.

To protect retail investors, ISSE has set rigorous IPD standards. The company prospectus, which covers vital information such as performance, financials, growth, risks and plans, enables investors to make informed decisions.

When companies list on ISSE, they often offer shares at discounted rates. This enables investors to acquire shares at a lower price, which can lead to long-term wealth creation if the company experiences significant growth.

The allotment of shares during an IPD confers shareholder status, providing investors with voting rights at the company's annual general meetings and a sense of ownership.

Participating in a IPD allows investors to interact with a company during its early stages, offering the potential for significant profits in the future. Given the rapid evolution of the global economy and the increase in IPD activity, it is an attractive investment prospect for both local and global investors.

However, a prudent strategy involves thorough research, risk assessment and seeking expert advice before committing to any investment decision. By taking a careful approach, IPD investment can serve as a valuable diversification within the investment portfolio.