IPO process – Steps to make an IPO
Appoint an investment bank or under-writers – Companies take guidance from investment banks for whole IPO process. Investment banks study on financial data of the company and find out financial need of the company. Under-writers have all the details about the deals, fund that will be raised, securities details etc.
Register with SEC – Company and investment banks both together file registration details which include all the company data and business plans of the company. Company also declare how they will use raised fund from IPO.
If all the details are correct then it gets approval.
Red Herring document – This is the document which contains the price per share and other details related to an IPO, and this document is shared with the peoples who are involve in that IPO.
Marketing- In this phase Company promote or market upcoming IPO to their investors.
IPO is priced – IPO price band is fixed in this phase, whether company want fixed issue or book building issue.
Available to public – In this phase application for IPO is available to public (online and offline). Investor can get application form from banks or brokers. They can fill this offline as well as online.