The term “public listing” is synonymous with “Initial Public Offering” or IPO. A private company seeking growth and expansion may engage in public listing to raise capital. At the time the company’s CEO has formally signed on to the stock exchange on the day of the initial public offering, the company is considered a public entity and thus a “publicly traded” company in the Stock market.

Purpose of the public list

Before the initial public offering, there must be an agreement between the founders of the private company on the amount of capital to be raised and on the plan for spending that capital. It’s that during the planning stage, one or two of these IPO goals would be voiced by someone from the management team.

Buy new equipment, software or build infrastructure.

· Diversify products or services through research and development.

Expand the operation to new regions.

Pay old or existing debts of the company.

Get more money from original investments.

Public listing process

While the IPO has become a popular jargon in business and economics for decades, it is actually a complex and meticulous financial process that takes time and money to execute. It starts with a private company that hires an underwriting firm or investment banker to help them through the entire IPO process. It goes without saying that for a company to become publicly traded, it must also invest in people, time and money.

Going public, a company is assumed to be co-owned by a new group of investors. These are the same investors who before the IPO, or during the “road show”, showed interest in becoming co-owners of that particular company. Based on public listing rules, a company that intends to sell its capital in the form of shares can choose the exchange on which it wants its shares to be traded electronically. It can be listed on NASDAQ, NYSE or any stock exchange in a certain country subject to their existing trading rules and trading policies.

Functions of the insurance company and the issuing company

It is the underwriting firm that assists the IPO issuing company in compliance with the public listing rules established by the Securities and Exchange Commission (SEC). The SEC is an organization that reads, interprets and approves a prospectus based on public listing regulations, legal aspects and financial policies. Throughout the course of public listing, the underwriter performs the following main duties and responsibilities.

Set the target or initial offer price for the stock.

Help the company create the prospectus (a formal legal document filed with the SEC)

Help the company balance stock supply with investor demand

Distribute shares to appropriate investors through known distribution channels and contacts

The success of a publicly listed company largely depends on the collaboration between the issuing company and the insurance company. Their goal is to make the IPO happen on time, on target, and in accordance with SEC rules. For one thing, company executives need to make sure they have a well-written business plan ready to present to potential investors before going public. On the other hand, the underwriters must dedicate their expertise in the creation of the prospectus that will be approved by the SEC.

Succeed with initial public offering

The price per share is what will determine the fate of a company in the hands of the investing public from IPO day to about a month of stock trading. The target price could go up or down depending on the supply and demand for the stock. A company is said to be successful in going public if it was able to exceed its target capital due to the appreciation of the value of its shares (which is usually the case).

Once a company goes public, its executives, employees, and stakeholders must work together to ensure the satisfaction of its shareholders.