A Roadmap for a Successful IPO in USA and Raised $millions
A Roadmap for a Successful IPO in USA and Raised $millions

Roadmap to a Successful IPO in USA and Raised $millions

The US capital market, particularly the major exchanges like the New York Stock Exchange (NYSE) and NASDAQ, is one of the largest and most liquid in the world.

By listing on these exchanges, foreign companies can tap into a vast pool of investors, including institutional investors, pension funds, and retail investors, which can help increase their visibility and attract a broad range of potential shareholders.

The Roadmap
  1. Evaluate the company's financials, operations, and growth potential, and then engage with investment banks and security lawyers.

  2. Select and hire investment banks (underwriters) to help with the IPO process. Underwriters assist in determining the offering price, finding investors, and complying with regulatory requirements.

  3. Drafting the registration statement. The company, together with its legal team, prepares a registration statement, known as the S-1, which includes detailed information about the company, its financials, risks, management, and how it plans to use the funds raised through the IPO.

  4. SEC review. The company files the registration statement with the Securities and Exchange Commission (SEC). The SEC reviews the document to ensure compliance with regulations and provides feedback. This review process can take several rounds of revisions.

  5. Roadshow. The company, along with the underwriters, conducts a roadshow to market the IPO to potential investors. Travel to different cities and meet with institutional investors, presenting the company's story and investment opportunity.

  6. Pricing the IPO. Based on investor demand and market conditions, the underwriters and company agree on the final offering price and the number of shares to be sold. This price determines the company's valuation at the time of the IPO.

  7. Going public. On the IPO day, the company's shares are sold to investors at the offering price. The underwriters facilitate the distribution of shares and ensure that the shares are allocated to various investors.

  8. Listing on Nasdaq. After the IPO, the company's shares are listed on the Nasdaq stock exchange. This involves fulfilling the listing requirements set by Nasdaq, such as meeting minimum financial and corporate governance standards.

  9. Post-IPO. The company becomes a publicly traded company, and its shares can be bought and sold on the stock exchange. The company must continue to meet reporting and compliance obligations, including regular financial disclosures, to maintain its status as a publicly traded company.

Jay B. Heller, Head of Capital Markets & IPO Execution at NASDAQ
Jay B. Heller, Head of Capital Markets & IPO Execution at NASDAQ

Jay B. Heller, Head of Capital Markets & IPO Execution at NASDAQ

Our Roles
  • Recommend guidance and financial metrics to meet OTC Markets, Nasdaq or NYSE listing requirements;

  • Create company presentation material and advise on the appointment of relevant professionals to conduct the IPO exercise - investment bankers, broker-dealers / underwriters / placement agents, independent auditors, legal counsels, valuer, company secretary and public relation consultants;

  • Review financial projections and business plan prior to dissemination to ensure they were appropriate and attainable;

  • Advise on the company’s valuation and negotiate with investment bankers / underwriter for reasonable IPO pricing;

  • Manage and coordinate the listing team to meet the agreed IPO timeline and answer all due diligence queries from regulatory bodies;

  • Prepare detailed Q&A document for potential analyst questions;

  • Work with investment banks / brokers-dealer on the road shows;

  • Coached management on the best practices for a successful IPO.

Chris King. Senior Vice President at OTC Markets Group
Chris King. Senior Vice President at OTC Markets Group

Chris King. Senior Vice President at OTC Markets Group

The Results
Successful Nasdaq Listing
Successful Nasdaq Listing

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