FAQ

What is an IPO and How Does it Work?

An Initial Public Offering (IPO) is the process where a private company offers its shares to the public for the first time.

Hire underwriters

File with the SEC

Determine offering price

Attract investors

List shares on an exchange for public trading
Note: The IPO process and timeline vary based on market conditions and regulatory requirements.

What Are the Key Steps in the IPO Process?

Here are 10 crucial IPO stages:

Decide to go public

Select a lead underwriter

Hold a kick-off meeting

Submit IPO filing (Form F-1) to the SEC

Issue “Red Herring” prospectus

Begin roadshow

IPO pricing

Share allocation to investors

Start trading

Manage post-IPO compliance & investor relations

What Is the Purpose of an IPO?

Raise capital to fund expansion, R&D, or acquisitions

Provide liquidity for early investors and founders

Increase visibility & credibility in the market

Enhance brand recognition and reputation

Can a Company IPO More Than Once?

Yes. Companies can conduct secondary offerings (or subsequent IPOs) to raise additional capital, following a similar process as the first IPO.

How Is an IPO Priced?

Determined by company and underwriters

Based on valuation, investor demand & market conditions

Uses the book-building process to gauge investor interest and set final price

How Long Does an IPO Take?

Typically 6–12 months from preparation to listing

Includes restructuring, SEC filing, roadshow, pricing, and listing

Timeline varies based on market conditions, regulatory reviews, and team efficiency

Company