Equity finance

Placing is indeed a method used in the process of an initial public offering (IPO). However, it is important to note that placing involves offering shares to specific institutional investors rather than the general public.
The legal requirement for an IPO is that at least 25% of the shares must be made available to the general public.
Placing, although not directly fulfilling this requirement, is still considered a method to get quoted because it involves offering shares to institutional investors who may later trade those shares on the stock exchange, thereby increasing the liquidity and marketability of the company’s shares.

In an IPO (Initial Public Offering), it is not compulsory for the issuing house to first acquire the shares.
The shares are usually first sold to an issuing house, which then sells them on to the public. This process allows the issuing house to act as an intermediary between the company and the public investors.

An offer for sale and an offer for subscription are different. An offer for sale refers to a sale of securities, such as stocks or bonds, directly to the general public. The price for the shares is usually fixed, and investors can choose to buy the shares at that price.
On the other hand, an offer for subscription involves inviting the public to subscribe for shares by submitting applications. The price for the shares may not be fixed, and investors may have to bid or state the price they are willing to pay for the shares. The shares are then allocated based on the bids or subscriptions received.