It also has to appoint a team of legal and compliance experts as well as lead managers and investment bankers to the issue. SEC reverts with its comments and requirements, and this goes on till SEC is sufficiently satisfied with the information given. Now the draft prospectus is ready to be distributed to prospective investors. Simultaneously, the company will also have to start the application process to list with the particular stock exchange. With the draft prospectus ready, the company can launch its road shows or the selling exercise for getting subscription to the issue.
Prospective investors give their price and amount indications to the lead managers to the issue.
Based on investor response, the lead managers fix the price of the issue, which is intimated to the SEC and the concerned stock exchange. With their concurrence, the issue is listed. All rights reserved.