An IPO, or initial public offering, is the process through which a private company offers its shares to the public for the first time. This process enables the company to become publicly traded and list on exchanges. Companies release IPOs to raise capital from investors. Companies can use the funds raised from an IPO for various purposes, including business expansion, debt repayment, infrastructure improvement, and digitalization. Companies must share information with prospective investors about their plans for utilizing the funds raised through an IPO. Subscribing to an IPO may provide investors with the opportunity to profit from listing gains, as the IPO units typically come at a discounted price. However, we always advise investors to read the Red Hearing prospectus, conduct thorough research, or consult with an advisor before making an investment decision. An application for an IPO subscription doesn't guarantee allotment of the shares to every investor, as it works on the lottery system.