Welcome to Initial Public Offering Guide
Initial Public Offering Costs Article
This is a selection made from among articles on Initial Public Offering Costs. 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.
Initial Public Offering Costs News
Vodafone India says IPO unlikely in 2012
Vodafone India, the local arm of the British mobile giant, may not launch its planned initial public offering this year due to uncertainty over the pricing of airwaves, its chief executive said Tuesday.
Read more...Shareholders sue Zuckerberg, Facebook
Shareholders are suing Mark Zuckerberg, Facebook Inc., and banks who were underwriters for the social network - including Morgan Stanley, claiming information was concealed ahead of the Facebook's initial public offering, Reuters reports.
Read more...Regulators looking into Morgan Stanley role in Facebook IPO
NEW YORK -- Securities regulators are amping up their interest in Facebook's lackluster initial public offering.
Read more...Mass. subpoenas Morgan Stanley in Facebook case
Massachusetts' top securities regulator has subpoenaed Morgan Stanley related to allegations that it gave some clients negative information about Facebook before last week's initial public offering.
Read more...Business Highlights
___Between Facebook and JPMorgan, Wall Street woes mountAlmost four years after the financial crisis, Wall Street still can't get it right.Investor anger mounted Wednesday over the initial public offering ...
Read more...The Facebook fizzle
The initial public offering (IPO) for Facebook, the social networking website, generated a media frenzy rarely seen since the dot.com bubble over a decade ago. Those who missed out on Friday's IPO could still buy shares through Tuesday, although the offering produced more press than profit — at least for anyone who was not among the company executives holding shares when sales began. After a ...
Read more...Intergeo Files Preliminary Prospectus for Initial Public Offering
Intergeo Files Preliminary Prospectus for Initial Public Offering
Read more...Facebook’s second day of trading is far from stellar
After Facebook stock narrowly stayed above the initial public offering price during its first day of trading, the price fell hard and fast Monday, knocking nearly 11 percent off the company’s record-breaking initial valuation.
Read more...