Share
Explore BrainMass

Manufacturing Company Initial Public Offering

What are the necessary steps required to take a Manufacturing Company public? Also, outline a timeline to implement a public offering.

I know that Initial Public Offering or (IPO) is the first sale of a corporation's common shares to investors on a public stock exchange. The main purpose of an IPO is to raise capital for the corporation. Taken from http://en.wikipedia.org/wiki/Initial_public_offering

Solution Preview

The first step for a manufacturing or any other company that plans to issue shares to the public or in other words, go for an IPO obviously starts with finalizing the decision among the board of directors and the top management to go public. Once the consensus to go public is obtained by the promoters and board of directors, the first "real" step is the selection of the team for the IPO, which constitutes Investment bankers, Legal advisors and auditors/accounting firm. A company can either pick up one investment banker as lead manager or hire several to act as co lead managers. Further, the company also needs to finalize an inhouse team that will assist these external companies in finalizing all the steps and requirements for the IPO.

Once these team members, such as Investment bankers and auditors are finalized, an official meeting takes place between the top management and internal team members handling the IPO as well as these investment bankers, auditors and lawyers.

The timetable for the IPO, other initial modalities and duties are finalized within this initial meeting.

The most important and time-consuming task facing the IPO team is the development of the prospectus, a business document that basically serves as a brochure for the company. Since the SEC imposes a ...

Solution Summary

What are the necessary steps required to take a Manufacturing Company public? Also, outline a timeline to implement a public offering.

$2.19