IPO Communications: Preparing for the IPO Process
Preparing for the IPO Filing
Companies looking to access the public markets often view communications through the narrow prism of the listing day itself. In reality, potential investors, key media and other stakeholders start to pay attention to a potential listing well before the stock begins trading. A seasoned management team learns to leverage business wins, product innovation and thought leadership during the company’s private life to raise awareness among key stakeholders well in advance of an eventual initial-public offering (IPO).
When the time for listing comes, the first real focal-point for these stakeholders is the filing of the S-1 (or F-1, in the case of a foreign entity) registration statement with the U.S. Securities and Exchange Commission (SEC). In reading this filing, the public gains a new level of insight into the company’s business model, compensation, financials, governance practices and risk factors. Many will make judgments before the company ever has an opportunity to begin its IPO roadshow — much less test its strategy in open trading.