Keep the definitions close
The IPO glossary.
Plain-language definitions for the terms that shape an offering, a company profile, and an investment-performance calculation.
- ADS
- An American depositary share represents an interest in an underlying non-U.S. issuer’s securities. The ratio matters: the Arm offering in this archive used one ADS for one ordinary share.
- Base offering
- The quantity offered before any additional-share option is exercised. IPOKit calculates base transaction size from this quantity and the offer price.
- Benchmark
- A reference used to give a performance calculation context. Name the benchmark, measurement period, and return convention.
- Dilution
- A change in an ownership or per-share measure when the relevant share count changes. Define which ownership or value measure is being discussed.
- Direct listing
- A route to exchange trading with a pricing mechanism and transaction structure that differ from a conventional underwritten IPO. Capital raising and existing-holder liquidity must be checked for the specific route.
- Enterprise value
- A valuation measure that relates equity value to debt, cash, and other specified claims or adjustments. State the exact components used.
- First trading date
- The date on which a security begins trading. Archive entries here use the anticipated date stated in the issuer’s pricing release.
- Gross proceeds
- A price-times-quantity figure before relevant fees and expenses. Company gross proceeds should count issuer securities, not automatically every security sold in the deal.
- Initial public offering
- An initial public sale of a company’s securities. The offering transaction and subsequent exchange trading are distinct events.
- Issuer
- The legal entity issuing the security. It may use a brand name different from its legal company name.
- Market capitalization
- A share price multiplied by a specified number of outstanding shares. A full-company measure is different from the value of shares sold in an offering.
- Offer price
- The stated price per security in the offering transaction. It is not necessarily the price of the first exchange trade or a later closing price.
- Opening price
- The price associated with the opening exchange trade or auction. Identify the precise market and data convention used.
- Prospectus
- The offering document that describes the issuer, transaction, financial information, risks, and other disclosures. Read related sections together rather than relying on the summary alone.
- Total return
- A performance measure that includes price movement and specified distributions, using a stated reinvestment convention. It should not be confused with price return.
- Underwriting option
- An offering provision allowing additional securities to be purchased under specified terms. Its quantity is excluded from base-offering totals in this archive.
Read the terms in context.
For the official investor introduction, see the Investor.gov IPO bulletin. Offering-specific definitions belong in the issuer’s documents. For a route comparison, use our IPO vs. direct listing guide.
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