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The Process

Once the team is assembled and the underwriter is chosen, the actual IPO process begins. The entire process is usually composed of the following stages:

  • Preparing the company (see the section on preparing the company for an IPO)

  • Assembling the team (see the section on forming the IPO team)

  • Signing a letter of intent with the underwriters

  • Beginning of the quiet period

  • Holding the organizational meeting

  • Preparing a preliminary registration statement (the first draft prospectus)

  • Conducting the due diligence process—concurrently with the preparation of the preliminary registration statement

  • Filing the preliminary registration document with the SEC for examination

  • Preparing an amended registration statement

  • Distributing the preliminary prospectus (“red herring”)

  • Marketing (“road show”)

  • Holding the due diligence meeting

  • Pricing, signing the underwriting agreement, and having the registration statement declared effective

  • Selling the shares to the public and closing

  • Trading, stabilization, and exercise of the underwriters' option (“green shoe” option)


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