The meaning of Public Offer of Sale (OPV) refers to the sale of a part of the shareholding of a company by the company itself or by shareholders. An OPC is part of the Secondary market, since at no time does it involve the issuance of new shares and only includes a change in ownership. These public offerings may be intended for the general public or may be of restricted access.
Types of OPV
Two classes of public offers of sale must be distinguished. On the one hand, the IPO of unlisted shares and those of quoted shares.
- IPO of unlisted shares: consists of entities that were not listed on the bag and who want to place shares on the stock market for the first time. This requires an application for admission to trading. It usually happens in general with those public companies that are privatized.
- IPO of listed shares: these are companies that are already listed, where one or more majority shareholders decide to put their participations in the company.
The concept is also frequently used Public Subscription Offer (OPS), which addresses the purchase by an investor outside the company of new shares of a company once the partners choose to waive the pre-emptive subscription right.
There are several situations that can invite you to invest in a Public Offer of Sale, such as the following three cases:
- When after the IPO there is the conviction that the shares are going to revalue. Thus, it will not be necessary to go to the market where the price of the share can be much higher.
- In phases of economic growth they tend to be successful, while when instability is detected in the markets they tend to end in failure.
- If small investors have difficulties accessing the public offer for sale.