A common question among investors is what happens to Pre-IPO shares once a company finally launches its IPO.
In most cases, the shares that investors bought before listing simply become regular listed shares after the company starts trading on the stock exchange. Once the listing happens, these shares can be seen in the investor’s demat account just like any other publicly traded stock.
However, there can sometimes be a lock-in period for certain shareholders, especially early investors or promoters. During this time, they may not be allowed to sell their shares immediately after the listing.
For other investors who bought shares earlier in the unlisted market, the main change is that the company’s shares begin trading openly on exchanges, and the price is then decided by market demand and supply. This is usually the stage when investors closely watch how the stock performs after the listing.