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. Quy trình thực hiện IPO
Stage 1. Preparation
Even before the kickoff meeting, the company must fully prepare financial, accounting, and tax reports, internal governance strategy, and investor relations (IR) plans. Establishing an IPO advisory team is also essential, 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.
The kickoff meeting is the official starting point of the IPO process, attended by advisors and most senior management of the company.
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 conducts a Roadshow – a series of meetings with potential investors to introduce the business, present its strategy, enhance share appeal, and build market demand.
Based on investor orders during the roadshow, the company and underwriters proceed with official pricing, determining:
- Final offering price;
- The number of shares issued;
- Total capital raised.
At the same time, the final prospectus is submitted and publicly issued so 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
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 Advisors LLC ready to accompany enterprises by tailoring solutions for a smooth, transparent, and effective IPO process.
If you are exploring financial strategies or legal requirements, contact the đội ngũ IVLF Advisors LLC for in-depth consulting and guidance.
Contact information
IVLF Advisors LLC
Hanoi Office
📍Địa chỉ: R1.7 Khu đô thị Eden Rose, 908 Kim Giang, Phường Thanh Liệt, Hà Nội
📞Hotline: (+84) 936 726 065
✉️Email: info@ivlf-advisors.com
Ho Chi Minh Office
📍Địa chỉ: 4/17, Đường HT02, Phường Tân Thới Hiệp, TP. Hồ Chí Minh
📞Hotline: (+84) 936 726 065
✉️Email: info@ivlf-advisors.com
