Going public is a complex process that entails taking a private company and offering shares of the business in exchange for investments. By forming a publicly traded company, the business can access a larger capital pool by selling shares to the public. Additionally, going public can improve the visibility of a business and help it become more established.

The process of a company going public is a meticulous and time-intensive endeavor with many steps. After the company decides to go public, it must select an experienced investment banker to lead the IPO process. The banker will then assemble a syndicate of other banks to help promote the IPO to prospective investors. During this process, considerable legal effort will be required to prepare the company and compile the required documents and materials necessary for a successful offering. This includes providing background and financial information on the company’s history and operations, as well as the risks and benefits of investing. This document must also be approved by the SEC to become legally binding.

Once the required documents are compiled and the investment banker has given its approval, the offering price is determined and the shares are sold on the stock market. The pending registration date must also be determined in the process. This date is the date at which the SEC declares the IPO officially effective and the stock can begin trading.

Though the process is exhaustive and complex, going public can create greater value for a company and its investors. A publicly traded company often retains greater access to capital and greater financial security, and the broadened visibility of a publicly traded company also lends to greater awareness and market presence. A successful IPO can result in greater liquidity and an improved company valuation, rewarding all stakeholders in the process.