Roadmap Planner. What is an IPO & why is it needed?

What is an IPO & why is it needed?

An Initial public offering (IPO) or stock market launch is a type of public offering in which owners of the company sell part of that ownership to institutional investors or stockholders for the first time. Stockholders, in turn, sell it to the general public on a stock exchange. Through this process, a private company transforms into a public company. It is the next step of the growth process for their company.

  • getting better rates when issue debt
  • the ability to issue more stock
  • getting easier process for mergers and acquisitions
  • the opportunity to design an employee stock ownership plan (ESOP) as a corporate finance strategy to attract top talent
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Alibaba Holdings Group, a China's biggest online commerce company, went public on September 18, 2014 at an overwhelming $21.8 billion. Four days later, underwriters exercised an option to sell more shares, bringing the total IPO to $25 billion. Alibaba became the largest IPO ever. The next rumored candidate to take over Alibaba is Uber.

Roadmap Planner. How to get a piece of a hot IPO?

How to get a piece of a hot IPO?

An IPO is all about sales job. However, to qualify for it, you need a deep advanced preparation that includes following steps:

  • Hiring an investment bank

    This step is called an underwriting process and it is just the way Wall Street works. You hire a bank, it prepares legal documents, buys the initial shares and sells them to the public. The biggest underwriters are Goldman Sachs, Credit Suisse and Morgan Stanley. You may choose other bank to go to. But, you should bear in mind that the best choice for you is a bank that has an expertise in the space you are working in and broad distribution networks.

  • Telling the world about your company

    This is a step when the hired bank begins drafting a Form S-1 - a legal document that is to be submitted to the Securities and Exchange Commission (SEC). This document contains the basic business and financial information of the company, plans for its proceeds, business model, risks, competitors, etc. The SEC needs all this information to make sure there is enough data to make intelligent investment decision.

  • A financial roadshow

    After the SEC approved the Form S-1, the company starts a series of meetings to find potential investors. The roadshow can last from a few days to a couple of weeks with around 50-100 meetings. It is the time when the executives determine the price and the quantity of shares they are ready to sell.

  • Last-minute preparations

    When the investors are determined, the bank announces the final price and the deal size. And finally, the next day is the big day. It is exactly the moment when the company goes public.

Roadmap Planner. Roadmap planner is the aces tool to pursue all your targets

Roadmap planner is the aces tool to pursue all your targets

As you can see, the road to the IPO market is a long and complicated one. To consider all the steps that are required for the preparation, you need a proficient and high-quality tool. Our productivity app, Roadmap Planner, is the very thing. This product is a comprehensive approach to a spatial project planning and is the best solution on the market to create a roadmap of all the processes a company needs to achieve.

Roadmap Planner allows to plan a company strategy and present it to colleagues at much more ease than other apps in this field offer.

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