What is the process for generating an IPO?

The process for generating an IPO includes:

  1. Appointment of an Investment bank.R
  2. Due diligence and regulatory filing.
  3. Roadshows.
  4. RHP and pricing.
  5. bidding through book building.
  6. IPO allotment.
  7. Listing and lock in process.

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