IPO (Initial Public Offering) is the process by which a company issues its shares for the first time on the stock exchange, marking the transition from a joint-stock company to a public company. So, what are the stages in the IPO process? Below are the specific steps that a company must undertake when conducting an IPO, based on common guidelines and practices across markets.
1. What is an IPO?
IPO – Initial Public Offering – is the first issuance of shares to the public, whereby a joint-stock company offers its shares to the public for the first time on the stock exchange.
2. IPO Process
Stage 1. Preparation
Before the kickoff meeting takes place, the company must be fully prepared with:
- Financial, accounting, and tax reports;
- Internal governance strategy;
- Investor Relations (IR) plan.
At the same time, the company must establish an IPO advisory team, including:
- An audit firm
- A law firm
- An underwriting organization
Stage 2. Kickoff
The kickoff meeting is the official starting point of the IPO process, attended by advisors and most senior management of the company.
This meeting also initiates the legal, business, and accounting due diligence process.
Underwriters conduct due diligence to ensure that the prospectus and offering documents do not contain material misstatements or omissions.
Stage 3. Drafting the filing
Once the financial and legal documents are prepared, the company submits its registration statement to the securities regulator.
Depending on the laws and regulations of each country, submissions may be confidential, public, or both.
Stage 4. Regulatory review
After receiving the filing, the regulator reviews the registration statement in detail. Comments are usually provided requiring clarification or amendments regarding:
- Financial and accounting information;
- Investment risks, business model, key contracts…
The company and its advisors must respond promptly and comprehensively, submitting revised versions until the regulator approves the filing.
Stage 5. IPO marketing
Once the filing is approved, the company will conduct a Roadshow – a series of meetings with potential investors aimed at:
- Introducing the business;
- Presenting its strategy;
- Enhancing share appeal and building market demand.
Based on investor orders during the roadshow, the company and the underwriter will proceed with official pricing, determining:
- The final offering price;
- The number of shares issued;
- The total capital raised.
At the same time, the final prospectus will be filed and publicly disclosed to ensure investors have complete information before purchasing shares.
Stage 6. Listing and secondary trading
After completing pricing and obtaining approval, the shares are officially listed on the stock exchange.
The first trading day marks the moment the company becomes a public entity, subject to market and investor oversight.
Choosing a reputable advisory partner
IPO An IPO is a significant milestone in a company’s development journey, not only enabling capital raising but also enhancing financial transparency and market credibility.
However, the IPO process requires thorough preparation and strict compliance with legal, financial, and communication requirements.
With extensive experience in financial and legal advisory, IVLF is ready to accompany enterprises by tailoring solutions for a smooth, transparent, and effective IPO process.
So , If you are exploring financial strategies or legal requirements, contact the IVLF team for in-depth consulting and guidance.
Contact information
IVLF International Consulting Company Limited
Hanoi Office:
📍 R1.7 Eden Rose Urban Area, 908 Kim Giang, Thanh Tri District, Hanoi
📞 (+84) 936 726 065
✉️ info@ivlf-advisors.com
Ho Chi Minh Office:
📍 4/17, HT02 Street, Hiep Thanh Ward, District 12, HCMC
📞 (+84) 936 726 065
✉️ info@ivlf-advisors.com
Contact IVLF for consulting and support in your transactions!
