The IPO Process: From Private to Public

An Initial Public Offering (IPO) is a transformative journey for a company, transitioning from private to public ownership. This process typically spans over a year and involves several key steps and participants:

Key Participants

• The Company: The entity going public
• SEC: Regulatory body overseeing the process
• Underwriters: Investment banks managing the IPO
• Auditors: Ensure financial accuracy
• Legal Counsel: Provide legal guidance and documentation
• Key Advisors: Senior management, major shareholders, PR team

Timeline and Key Steps

12+ Months Before Admission

• Engage outside counsel, auditors, and advisors
• Prepare audited financial statements (US GAAP or IFRS)
• Review accounting policies and agreements
• Plan for SOX compliance
• Establish a public company board of directors

6-12 Months Before Admission

• Select lead underwriter
• Establish investor relations and financial planning functions
• Review D&O insurance

4-6 Months Before Admission

• Determine underwriter syndicate
• Hold organizational meeting
• Prepare draft S-1 registration statement
• Meet with the stock exchange (NASDAQ/NYSE)

2-4 Months Before Admission

• Complete underwriter due diligence
• File S-1 registration statement with SEC
• Respond to initial SEC comments

1-2 Months Before Admission

• Update financial statements
• Respond to ongoing SEC comments

4 Weeks Before Admission

• Begin investor roadshow
• Offering appears in the Click.Markets ETNA widget 

2 Weeks Before Admission

• Assign price range
• Accept indications of interest
• Distribute the “Red Herring” prospectus
• Continue roadshow and book-building

Week of Offering

• SEC declares offering effective
• Board approves stock price
• Listing and trading commence
• ClickIPO allocations confirmed

Post-Offering (30-60 days)

• Underwriters exercise over-allotment option
• Expand market maker support
• Analyst coverage begins

ETNA and Click Markets  Partnership

ETNA’s collaboration with Click Markets brings exciting opportunities for broker-dealers and retail investors:

• Direct access to IPOs for retail investors
• Expanded product offerings for broker-dealers
• Increased client engagement
• New revenue streams

This partnership democratizes the IPO process, allowing retail investors to participate in offerings traditionally reserved for institutional clients.

Broker-dealers can leverage these new investment tools to enhance their services and attract more clients. The integration of IPO access into ETNA’s white-label platform provides a competitive edge in the evolving financial landscape.

To explore how ETNA’s Trading Platform can benefit your business and boost client engagement, schedule a demo call today!