What is IPO in the share market? | IPO Explained
Going Public ( Going public explained ) is a big step for a private company, which means that the company can now have access to a lot of money, giving it a better opportunity to grow and expand.
IPO process is complex and requires time, money, and substantial consulting. Let's look at the steps ( IPO process explained ) :
Selecting an Investment bank: As step one, a company that wants its transformation to a public goes to investment bankers, for advice on the transaction and to provide underwriting services.
Investment banks evaluate the prospects of a business and its past performance. They also look carefully at the business model, industry, and products of the company.
Companies often select banks that have been engaged with the business in the past because these banks know in and out of the company.
Regulatory filings: Markets regulators regulate public markets across most of the jurisdictions. Since public markets come in the ambit of market regulators, IPOs are also monitored and evaluated by the regulators.
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