All terms
IPO (Börsengang)
A company's first sale of shares to the public, i.e. its stock market debut.
IPO stands for initial public offering. A previously private company offers its shares on the stock exchange for the first time. It raises money for growth, or existing owners sell part of their stake.
Before the launch a price range is set and investors can subscribe. On the first trading day the market decides the price.
Example: Porsche AG listed on the Frankfurt Stock Exchange in September 2022. An IPO is no sure win. Many new stocks trade below their offer price after a while, because valuations at launch are often ambitious.