Overview of an IPO

Keywords

IPO process, capital raising, costs and timeline

Abstract

Companies choose to go public for a variety of financial, strategic, and operational reasons. Common reasons are to gain capital to fund growth and to gain public shares for acquisitions. Because this process is expensive and complicated, it is important that companies analyze their specific situations when deciding whether to prepare for an IPO. The process involves several different parties with specific skillsets and consequently costs between 8 to 10 percent of the offering size. Usually, this amount falls between 2 and 5 million dollars. The IPO process usually takes about six months from the time the initial S-11 is filed.

Original Publication Citation

Overview of an IPO (L. Sheffield and T. J. Wilks), IPOhub, November 29, 2017. (4,356 unique views as of Jan. 13, 2023)

Document Type

Peer-Reviewed Article

Publication Date

2023

Publisher

IPOhub

Language

English

College

Marriott School of Business

Department

Accountancy

University Standing at Time of Publication

Full Professor

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