The process for generating an IPO includes:
- Appointment of an Investment bank.R
- Due diligence and regulatory filing.
- Roadshows.
- RHP and pricing.
- bidding through book building.
- IPO allotment.
- Listing and lock in process.
The process for generating an IPO includes:
Companies typically go public to raise huge amount of capital in exchange for securities. Once a private company is convinced about the need to become a public company, it kick-starts the process of IPO. Companies which want to go public follow a process that exchanges adhere to. The IPO process is quite complicated.
This is to check the likelihood of a scam and protect investor interest.
Step 1: Hire an investment bank
Step 2: Register with SEC
Step 3: Draft the Red Herring document
Step 4: Go on a road show
Step 5: IPO is priced
Step 6: Available to public
Step 7: Going through with the IPO