Page 83 - Initial Public Offering - An Introduction to IPO on Wall Street

4.6.1 Typical Execution Timeline

Companies often start preparing long before they begin the IPO process to become public
corporations. It can take about six to a year for a standard IPO execution process to conclude.
A crucial success factor that makes for a seamless and successful implementation process is
advance planning.

The IPO process starts with full force after a company achieves a tentative agreement with its
underwriters, and a quite spell starts during which a business is subject to SEC rules regarding
the disclosure of details outside the brochure.

There will be restricted opportunities to increase the visibility of a corporation, its brand, goods
and regional markets, as any advertisement that produces a favorable attitude towards the
company's securities may be deemed illegal. It is appropriate to continue with existing, standard
advertisement and advertisement of knowledge.

For EGCs, an exemption from this rule is offered. During the quiet spell, these filers can
participate in verbal or written communications with some prospective investors to evaluate
interest in the bid. Either QIBs or organizations that are appointed as authorized investors must
be the prospective investors.

These 'water testing' activities can take place before or after the day of the submission of the
registration statement. Organizations should keep in mind that the SEC can require any
materials utilized for water testing and can be subject to federal securities laws.
In parallel timelines, organizations would need to balance the following activities to keep
business going as usual:

 Establishment of the preliminary prospectus;
 Enquiry into the company's underwriters’ due diligence activities; and
 The creation of roadshow marketing collateral

A business should typically expect an average of three to five months from the time it first files
until the time it collects the revenues from an offering, as previously stated. The actual duration
of this time depends, among other things, on the capacity of the corporation to go public, on
the existence of the details to be reported in the statement of registration, and on the
circumstances of the market.

Holding the all-hands meeting

An all-hands meeting is organized as the first step in the IPO process. All participants of the
registration committee, business leadership, and independent auditors, accounting consultants,
underwriters, lawyers of the business, capital markets consultants and lawyers of the
underwriters should join this conference.

The aim of this initial organizational meeting is to debate the essence of the offer and the
required SEC registration form, to organize the duties for the Registration Declaration sections,
to set a schedule for the expected filing date and to exchange details on the accessibility of the
Working Group.

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