Page 117 - Initial Public Offering - An Introduction to IPO on Wall Street

A roadshow is designed to help a business's top brass or an underwriting firm to promote shares
to investors who are likely to take part in an IPO. This offers the organization’s top leadership
a chance to speak to investors about the company's plan to go public.

Often, roadshows are critical to the success of an initial public offering (IPO). It is almost
necessary for a business’s top leadership or representatives of the underwriting firm to fly
across a country or continent to introduce the IPO to potential investors.

The goal of a roadshow is to raise awareness and intensify investors' interest in an IPO. The
level of impact created by a roadshow will define the level of involvement in an IPO. Potential
investors in an IPO meet during a roadshow event and listen to sales pitches and discussions
related to the offering.

It is possible to both digitally and physically hold a roadshow event. Businesses that utilize the
internet conduct their roadshow sales pitches online via podcasts, or live video conferencing.
Digital or virtual IPO roadshows have become the standard in a post-pandemic world. To
maintain social distancing, IPO roadshows are now increasingly conducted online.

In recent months, the COVID-19 related social distancing protocols have forced many IPO
roadshows to be conducted virtually, culminating in a flurry of IPO-related online activity as
investment bankers, managers, and investors switch to virtual gatherings instead of settling into
conferences at a far-flung meeting room in hotels.

Legally, very few—if any—adjustments are needed in the IPO process when investor meetings
are carried out online through video conferencing. Both the paperwork and the actions an
organization takes to prepare its listing to stay the same.

Information Presented in a Roadshow

The key activities in a roadshow include presenting the business as well as its upper
management to prospective investors. The history of the business and plans of the organization
are disclosed to the investors during the briefing. A roadshow sales pitch is typically performed
verbally and through interactive presentations, including the use of video and electronic media.

An interactive question and answers session will always be a part of a roadshow where
investors make generalized inquiries about the business. The following is the critical
information that prospective investors can obtain through IPO roadshows:

 The organizational history and background;
 Information about the organization’s top brass or upper management;
 Goals and targets for IPO;
 Company mission and vision;
 Potential growth;
 Earnings history and financial performance; and
 The organization’s future investment and sales projections

After the Roadshow Completion

A business proceeds by producing the final prospectus of the IPO after sales pitches at a
roadshow are concluded. Before the final document is drafted, the organization should have

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