IPO Underwriter
The first step for a company before it goes public is to choose an investment bank to advise it and to provide it with underwriting services.The bank will then help the company determine the initial price, buy the shares from the issuing company and then sell the shares to investors.
2. Due Diligence
The company’s shares will then have to go through a process called Due Diligence, meaning they have to submit to an extensive and thorough review to check the company’s financial records, history, etc.
3. The IPO
Once all of the paperwork is approved, the company will start to market and advertise its IPO, to let the public know of the scheduled date. This will help generate the buzz surrounding the company’s IPO, and could help influence subscription and, therefore, the company’s share price.