Chronology: The Process of Going Public

 

 

 

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The process of taking a company public presents unique challenges best faced with the assistance of an experienced team. A crucial member of that team is an experienced securities lawyer. Each member of the team has key responsibilities to fulfill in guiding the company through the following process:

  • Board approval @
  • Assembling the team @
  • Reviewing and restating the financials @
  • Letter of intent with investment bank @
  • Drafting the prospectus @
  • Due diligence @
  • Presenting the preliminary prospectus to the SEC @
  • Syndication @
  • Road show @
  • Finalizing the prospectus @
  • Pricing the offering and determining the offering size @
  • Printing @

 

 

 

 

 

The primary duties of the Sponsor are to carry out due diligence on a listing applicant to determine whether it is fit for listing and that the prospectus contains all necessary and truthful information about the company. In addition, the Sponsor coordinates with the regulatory authorities. The Sponsor, or an affiliate of the Sponsor, typically is a member of the underwriting syndicate, although this is not always the case. However, the Sponsor, whether or not a member of the underwriting syndicate, will provide advice on the pricing of the shares based on the prevailing market conditions before the process begins. There will not be a firm commitment on the underwriting until after the approval for listing by the regulatory authorities and just a few days before the start of trading.

 

 

 

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