FAQs

Question

Can i sell my allotted shares on the day of listing if it is a Fresh Offer made by the Company?

Answer

No, it is advisable to wait for the completion of a full financial year before considering selling your stock. This allows the funds invested by the new shareholders to be fully utilized within the business, and gives time for the stock to potentially experience significant movement in the market based on its performance and also provides a chance to evaluate the company's Shariah status on the basis of definite data of the company post-IPO. Investors who participate in such IPOs solely for the purpose of obtaining listing gains are essentially engaging in speculation, which is likened to gambling (Qimar). Such practices are prohibited in Shariah.