Offer for sale is the most common way of promoting a new issue and bringing a company to the stockmarket and listing shares for the first time.

An offer for sale gives as large a number of investors as possible the chance to invest in the security being offered. That means a wide distribution of shareholdings and holds out the prospect of a good trading market in the shares when they have been issued.

An issuing house buys the shares and then sells them on to the investing public. A prospectus containing the details of the sale must be published in at least two national newspapers.

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