Chapter 3
IPO Process
This chapter takes a look at the initial public offering (IPO) process from the moment when management decides to do an IPO to the time when shares are sold to the public. These are the basic steps that precede an initial public offering:
- The company selects underwriters to lead the deal.
- An organizational meeting is held.
- Due diligence is conducted.
- A letter of intent is signed.
- A registration statement is drafted and filed with the Securities and Exchange Commission (SEC).
- The road show begins the marketing.
- Investors are solicited.
- The company chooses a listed exchange or over-the-counter (OTC) market.
- The offering is finalized.
The IPO process is more complicated than many investors realize. Before examining each step, ...
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