- flotation
- The occasion on which a company's shares are offered on the market for the first time. Exchange Handbook Glossary————flotation or floatationFlotation is the process of making a company's shares available to the general public by obtaining a quotation on the Stock Exchange. Also referred to as " going public" or "obtaining a Stock Exchange listing". Financial Services Glossary————The process by which a company obtains a listing from the UKLA and is admitted to trading on the Exchange. London Stock Exchange Glossary
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making shares in a company available for people to buy for the first time:• The group has decided to postpone its stockmarket flotation until next year.
• If the dividend had been cut, it might have made investors nervous about the forthcoming share flotation.
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When a privately owned company needs new capital, it can raise the money by issuing shares to the public on the stock market and floating the company. Flotation is also known as 'going public' or making an IPO (Initial Public Offering).► See also IPO.* * *
flotation UK US /fləʊˈteɪʃən/ noun [C or U] mainly UK also UK floatation) STOCK MARKET► a situation in which a company offers shares for sale on a stock market for the first time: »Shares fell one point to 138p, their lowest level since flotation in May.
a planned/proposed/possible flotation »Interest from institutional investors in a possible flotation is rumoured to be strong.
»Several subsidiaries were sold during a public flotation in 2005.
flotation of sth »Finance experts have predicted a wave of flotations of private equity firms.
£500 million/$2.4 billion, etc. flotation »Plans will be announced for a $1.1 billion flotation later today.
»Publicly, the firm remains committed to a stock market flotation, which is likely to value it at up to pounds 4.5 bn.
»The French media giant is the latest in a series of companies to abandon flotation plans.
»Shares ended the week at 392p, compared with their 380p flotation price.
Financial and business terms. 2012.
