Skip to main content
flotation

flotation

1 7.5
Raising money for a company by selling shares to the public
  • noun
  • /floʊˈteɪʃən/
  • Specialized
translation icon : salida a bolsa
  • The successful flotation of the firm on the stock exchange attracted many investors looking for fresh opportunities.
  • flotation process

Examples

  • Then there was the botched flotation of one of the stock exchanges, BATS.

    Blog text (15)
  • - Uh, investment syndication and public flotation.

  • Before 1996, there were almost no international flotations from Egypt.

    Academic text (1999)
  • Thus, firms with relatively small capital needs will face larger flotation costs per dollar of issue, reducing the attractiveness for small firms.

    Academic text (2018)
  • The company's recent flotation allowed it to raise significant capital to expand its operations.

  • Investors eagerly anticipated the flotation of the new tech startup, hoping for high returns.

Synonyms

IPO
vsflotation
53 4.1

An event when a company sells shares to the public for the first time

is broader covering share or bond financing beyond the first sale
initial public offering
vsflotation
  • Specialized
8 5.3

The first time a company sells shares to the public on the stock market

is broader covering share or bond financing beyond that initial public sale
initial offering
vsflotation
  • Specialized
1 6.7

A company's first sale of shares to the public on a stock market

is broader as it also covers bond or later financing methods
floatation
vsflotation
  • UK
7.8

Selling a company's shares or bonds to the public for the first time

is the broader process that can include issuing bonds or later offerings

Compounds

Something that helps a person float in water and avoid drowning

center of flotation
  • Specialized
9.9

Point on a ship's waterline where the area of the hull at water level balances when the ship tilts

The point on a floating object where the water's upward push acts

Surface Forms

flotation singular
flotations plural

Morphology

flotation = float (semi-transparent) = float + ation

The financial sense is a metaphorical/technical extension of 'float' (to put a company on the market), so learners may not infer the specific process of issuing shares from the base.

Etymology

The word flotation comes from the common word float, meaning 'to rest on water', plus the ending -ation, meaning 'the action of'. So a company's flotation is like letting it 'float' on the stock market so it can sell shares and raise money.