IPO

IPO has place when a private company begins to offer its shares on a public exchange for the first time. An IPO is usually conducted after the company has been in business for several years, and is intended to raise additional capital for the company's further development.

The process of going public is a time-consuming endeavor and can take up to several years. The first step is to select an investment bank to prepare the IPO. Several banks can participate in the share issue process, but one main bank is selected to lead the book of demand.  The next move is an initial valuation of the current value of the company. The condition of the overall market is also being checked, and in the meantime due diligence is being conducted on the company. The next steps are the preparation of the prospectus and the completion of all other registration formalities.

Once the public offering is approved by the regulatory authorities, the company sets the offering price and the exact number of shares to be issued. 

From now on, the company together with the investment bank begin a so-called road show, the purpose of which is to meet live and encourage investors such as family offices, hedge funds, investment funds and individual investors to invest. On this basis, a final list of those interested in taking up shares is identified,  which are then provided to investors on the day of the IPO.

From the day of the IPO, the company begins to be listed on a public exchange and it becomes possible to trade its shares through traditional stock brokers.