A Pre-IPO placement occurs when shares of a company are offered to private investors before the IPO hits the market. These private investors are usually private equity firms, HNIs, Alternative Investment Funds, Special Situation Funds, etc who are willing to buy a large stake in the company. Pre IPO is an early stage Investment at a preferred price and is open to anyone.

An initial public offering (IPO) is the first sale of stock issued by a company. In other words, it’s when a business decides to start selling its shares to the public. The company will decide how many shares it wants to offer, and an investment bank will suggest an initial price for the stocks based on the predicted demand for them.

Newly created shares sold for cash, to “the general public” for the first time and the company becomes a publicly-traded company in the process.