Walk me through the IPO process.
Whether you know the stages and who does what.
Answer it out loud firstTake 30–60 seconds, as you would in the room. Then compare with the model answer.
Show the model answer
The company appoints banks (bookrunners) and advisers, prepares audited financials and a prospectus, and the banks' analysts publish pre-deal research. Investors are sounded out through early-look and pilot-fishing meetings, the valuation range is set, and the intention to float is announced. After the prospectus is approved, management goes on a roadshow while the banks build a book of orders; the offer is priced, shares allocated and trading begins — often with a greenshoe to stabilise the price.
The full answer
- Preparation (3–6 months): bank selection, due diligence, accounts, legal structure, equity story.
- Pre-marketing: analyst research, early-look and pilot-fishing meetings with investors.
- Intention to float: public announcement.
- Price range and prospectus: valuation range set using comps and a DCF, prospectus approved by the regulator.
- Roadshow and bookbuilding (1–2 weeks): management meets investors; banks collect orders with price limits.
- Pricing and allocation: price set from demand; allocations favour long-term investors.
- Trading and stabilisation: the greenshoe (over-allotment option, typically 10–15%) lets banks buy shares in the market if the price drops.
- Lock-ups: existing shareholders can't sell for 6–12 months.
Alternatives: direct listings and SPAC mergers.
Mistakes to avoid
Forgetting the greenshoe and lock-ups.
Follow-ups they may ask
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