Private placement

A private placement is a sale of shares or bonds to pre-selected investors rather than on the open market. A private placement can be an alternative to an initial public offering (IPO) for unlisted companies, or a follow-on public offering (FPO) for listed companies. Investors that are generally invited to participate in private placement include HNIs, banks, mutual funds, insurance companies and pension funds.

Answered on 2022-07-01