If you’ve never been a part of a go public transaction, it is reasonable to assume that you may not have all the knowledge required to make a fully informed decision. Within this article we aim to provide the essential information in hopes to give you a clear idea of what is to be expected.
Overview of Offering Process and Timing
The time required to complete an IPO varies significantly depending on the circumstances of the company and complexity of the transaction. An IPO may take from 3 to 6 months or longer to complete.
It is important to note that this timetable should be used as a guide only. The actual timing of an IPO will vary from transaction to transaction as it is affected by a number of internal and external factors.
The process generally includes the following:
Weeks 1 - 5
• Organizing a working group, engaging the underwriters, assembling the deal team, determining where the offering will be made and the exchange on which the securities will be listed.
• Underwriters will begin the due diligence process. Preparing and filing a preliminary prospectus with the securities regulators in the jurisdictions where the offering will be made.
• Undergoing regulatory review of the preliminary prospectus, which can include revisions of the prospectus, financial statements and any technical reports for applicable issuers.
• Applying for listing of the securities on the exchange and attend to listing requirements.
• Oral due diligence session with company’s management, auditors and legal counsel.
Weeks 6 - 9
• Marketing materials prepared and expressions of interest are collected from potential purchasers.
• Underwriters begin marketing efforts, finalizing the underwriting syndicate and forming the selling group.
Weeks 10 - 11
• Finalizing the terms of the offering (i.e., price, size, etc.) and the underwriting agreement.
• Filing and obtaining a receipt for the final prospectus from the relevant securities regulators.
• Delivering the final prospectus and obtaining binding subscriptions for the securities from purchasers.
Weeks 12 - 13
• Pre-closing meeting to settle and sign all closing documentation.
• Issue press release.
• Closing the offering and completing the listing on the exchange.
• Securities begin trading on the desired exchange.
The IPO process and timing can vary depending on the situation. If any clarification is needed, please do not hesitate to reach out to our experienced team who will be happy to assist.