IPO (Initial Public Offering)

An initial public offering refers to a company’s flotation on the stock exchange and the associated first-time public offering of shares to a broad group of investors. It is one of the common exit channels but depends heavily on the condition and receptiveness of the relevant capital markets.

Preparation and execution typically comprise IPO readiness, the appointment of syndicate banks, preparation of the securities prospectus, pre-marketing/roadshow, bookbuilding and listing. The company is thereafter subject to stricter transparency and reporting obligations.