Recently there is a trend, which I am seeing in the companies who are coming for Business Planning services . They all wanted , that a future provision of IPO, remains on the plan . It seems there is an IPO craze now and there is mystic glory assoiciated with the word IPO. Let me try to demystify it litlle.
Initial public offering (IPO), also referred to simply as a "public offering," is the first sale of stock by a private company to the public. IPOs are often issued by smaller, younger companies seeking capital to expand, but can also be done by large privately-owned companies looking to become publicly traded.
The IPO process would start from assitant service taken from underwriting firm , before going to the relevant regulatory authority for an issue. Underwriting firm, will help to determine what type of security to issue (common or preferred), best offering price and time to bring it to market.
Underwriting refers to the process that a large financial service provider (bank, insurer, investment house) uses to assess the eligibility of a customer to receive their products like equity capital, insurance, mortgage or credit to a customer.So , if you look at the underwriting process , which is basis of going for an IPO an approaching an regulatory authority , then it is evident that , putting it right in the Business plan , makes a lot of sense as management can then put an strategy in place to work out successfully the IPO game.