Rules that decide who can apply for shares in an IPO.
IPO eligibility refers to the criteria set by the company or regulatory authorities that determine who can participate in an Initial Public Offering (IPO). Generally, individuals, institutions, and retail investors who meet specific requirements, such as age (usually 18+), financial stability, and residency, can apply.
For retail investors, the eligibility is usually based on the number of shares they wish to apply for. In many countries, certain institutions, such as Qualified Institutional Buyers (QIBs), are given priority in allotments. Investors must also comply with the KYC (Know Your Customer) requirements to participate. IPO eligibility helps ensure that only qualified investors are involved in the process.
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