Page 74 - Initial Public Offering - An Introduction to IPO on Wall Street

documents for analyst presentations and coach management. Moreover, leadership teams may
want to recruit speech coaches to assist in getting ready for the roadshow.

In order to provide such operational and administrative services related to trading stocks,
businesses may also need to hire a stock transfer agent. The transfer agent provides, revokes,
and transfers stock certificates, makes dividend payments, conducts other business operations,
and delivers shareholder reports.

4.5 Preparing the Registration Statement

It is vital that you avoid the urge to allow large quantities of writing to be carried out by the
underwriters or lawyers, as this could lead in a registration statement that diverges from the
approach of management. The leadership knows the organization best, so it can take an active
part in the drafting process and provide guidance.

4.5.1. Getting the Registration Statement Ready

A relatively complex, time-intensive, complex process involving substantial preparation and
collaboration is the preparation and filing of the registration document. It involves providing,
as efficiently as possible, the details required by the SEC form and ensuring compliance with
the relevant SEC rules. The management team, attorneys and independent accountants need to
do a great deal of work to define a business as clearly and favorably as possible, while also
revealing any adverse risk factors.

It is during the planning period that it can take longer than planned for a projected schedule to
go public, creating a delay in the projected filing date. As such, it is vital that the entire team
be fully familiar with the specifications of the registration statement, be mindful of the
timelines, regularly evaluate the status of various parts of the registration statement and make
sure that each section's reviews are prompt.

The statement of registration comprises of two main sections. Part I includes the basic details
concerning the organization’s business activities, financial situation and leadership, all of
which are expected to be included in the brochure/prospectus, as well as the financial reports
of the firm. Part II includes extra details that are not needed as part of the brochure.

4.5.2 Filing Form S-1

The following information is required by form S-1:

Part I—Information Required in the Prospectus
Prospectus Summary—The box, which appears at the start of the prospectus, is a brief
description explaining the firm, its operations, the sort of securities offered, the amount of
expected proceeds, the planned use of the earnings and the key risk factors. It may also include
some financial overview data. The full mailing address and the contact number of the main
head offices of the business are also included in this section. Although it is not needed, many
businesses in this section provide their website addresses. In addition to repeating the content
of the prospectus, the review should include a concise rundown of the main aspects of the
proposal. As this is the portion of the prospectus that is most widely read, management should
take time to ensure that the company and the overall product are completely expressed.

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