I guess today's PR is to check off Item #6 for an
Post# of 36537
https://www.investopedia.com/terms/i/ipo.asp#...20publicly.
Steps to an IPO include the following:
1. Underwriters present proposals and valuations discussing their services, the best type of security to issue, offering price, amount of shares, and estimated time frame for the market offering.
2. The company chooses its underwriters and formally agrees to underwriting terms through an underwriting agreement.
3. IPO teams are formed comprising underwriters, lawyers, certified public accountants, and Securities and Exchange Commission experts.
4. Information regarding the company is compiled for required IPO documentation.
a. The S-1 Registration Statement is the primary IPO filing document. It has two parts: The prospectus and the privately held filing information. The S-1 includes preliminary information about the expected date of the filing. It will be revised often throughout the pre-IPO process. The included prospectus is also revised continuously.
5. Marketing materials are created for pre-marketing of the new stock issuance.
a. Underwriters and executives market the share issuance to estimate demand and establish a final offering price. Underwriters can make revisions to their financial analysis throughout the marketing process. This can include changing the IPO price or issuance date as they see fit.
b. Companies take the necessary steps to meet specific public share offering requirements. Companies must adhere to both exchange listing requirements and SEC requirements for public companies.
6. Form a board of directors.
7. Ensure processes for reporting auditable financial and accounting information every quarter.
8. The company issues its shares on an IPO date.
a. Capital from the primary issuance to shareholders is received as cash and recorded as stockholders' equity on the balance sheet. Subsequently, the balance sheet share value becomes dependent on the company’s stockholders' equity per share valuation comprehensively.
9. Some post-IPO provisions may be instituted.
a. Underwriters may have a specified time frame to buy an additional amount of shares after the initial public offering date.
b. Certain investors may be subject to quiet periods.