Welcome to Initial Public Offering Guide
1 Automotive Initial Public Offering Article
This is a selection made from among articles on 1 Automotive Initial Public Offering. For a permanent link to this article, or to bookmark it for future reading, click here.
Initial Public Offering Process: How it is Done?
from:
In business, finance, and trade, process is an essential ingredient to complete the recipe of a successful commercial result. It typically involves inputs (pre-requisite data that must be entered before any method can be put into place), different methods, and outputs (the expected results once methods have been applied to the inputs).
In addition, it is a collection on interrelated structural activities that generates something of value for a corporate organization, its stakeholders, and/or its clientele. In other words, the process that a corporate organization will adopt will help them realized the services that they are offering to the public.
It works like a cookbook wherein the ingredients are prepared first before proceeding to the step-by-step procedure of cooking a particular dish or cuisine. Once the ingredients and the procedures have been satisfied, you will be able to arrive with a very delicious meal which you can enjoy. Such delicious meal represents the achievement of a corporate organization in terms of excellent delivery of products or services to the public and generated revenue for the company.
Process does not limit itself on corporate organizations. Even external matters require process in order to facilitate smooth flow of the application to the business community. One of which is the initial public offering.
Also referred to as IPO, initial public offering is the first or the initial sale of a company’s common shares to the public. It is primarily for raising additional capital or funds for a company that will be used to sustain its growing needs (production, distribution, and others). The term merely applies to initial issuance of common shares to interested public investors. Thus, any late issuance of common shares will be referred to as a secondary market offering.
The IPO process involves rules and regulations imposed under different governing laws and bodies, such as the Federal Securities Act of 1993 and the U.S. Securities and Exchange Commission, respectively. In addition, state laws affect the IPO process, though there are exceptions applicable especially of the common shares are listed with a major stock exchange such as the NASDAQ and the NYSE.
The process generally starts with the company selling the common shares to the public (the issuer) to draft a prospectus. Such prospectus contains the details about the company’s history, background, finances, offered products and/or services, industry environment, and other related information. The Securities and Exchange Commission actively scrutinizes the content of individual IPO prospectus before proceeding to approval. Companies going public typically employ the services of major law firms during the drafting process.
After the SEC approved the prospectus, the prices of the common shares are now finalized and the IPO will now be entered into a “free riding” period. The underwriters, which are composed of several investment banks, will now offer the common shares for sale to the public in various ways. All offers that will be made must have an accompanying copy of the approved IPO prospectus. Any misleading and false statements are strictly prohibited while the offering of common shares for sale within this period is going on.
The executives of the company going on public will be held responsible for any misleading information or omissions on the prospectus. In the same manner, the underwriters will also be held liable if they failed to conduct a reasonable investigation about such misleading information or omissions.
Initial public offering involves a process, which will keep IPO flowing smoothly and protected against individuals or groups who want to take advantage of the process itself.
1 Automotive Initial Public Offering News
Delphi Files Resale Shelf Registration Statement to Permit Sales by Certain Shareholders Following Expiration of IPO ...
Delphi Automotive today filed a resale shelf registration statement with the Securities and Exchange Commission on Form S-1 to permit sales of ordinary shares by certain pre-IPO shareholders, pursuant to the terms of the shareholder agreements resulting from Delphi’s initial public offering.
Read more...Delphi Automotive 4Q profit, revenue climbs
Delphi Automotive 4Q profit, revenue climbs
Read more...Delphi Reports Fourth Quarter and Full Year 2011 Financial Results
Delphi Automotive , a leading global vehicle components manufacturer providing electrical and electronic, powertrain, safety and thermal technology solutions to the glo
Read more...Delphi Files Resale Statement To Permit Sales By Certain Shareholders
Delphi Files Resale Statement To Permit Sales By Certain Shareholders
Read more...UAE jeweller Damas ‘hires Nomura for deal’
UAE jeweller Damas International has appointed Japan’s Nomura to advise it on a potential offer from Qatari conglomerate Mannai Corporation, three sources familiar with the matter said yesterday.
Read more...ThyssenKrupp In Talks With Outokumpu On Stainless Steel Merger - Update
German steel giant ThyssenKrupp AG Monday confirmed that it is in talks with Finnish rival Outokumpu Oyj regarding the merger of its stainless steel unit Inoxum. ThyssenKrupp noted that all options, including an initial public offering, a spin off or a sale to another investor, remains open for Inoxum.
Read more...4 Stock Strategies From Wall Street: Feb. 9 (Update 1)
The world of vitamins and cars is calling, but don't jump on housing.
Read more...Insurance Auto Auctions Paves the Way for Recycling U.S. Salvage Vehicles in China
Insurance Auto Auctions, Inc. the leading live and live-online salvage auto auction company and wholly-owned subsidiary of KAR Auction Services, Inc. , today announced an agreement with Chen Jia, Inc.
Read more...