Underwriting and IPOs

This training offers a basic understanding of underwriting and the IPO processes. Going public refers to a private company's initial public offering (IPO) which means from that point it becomes a publicly traded and owned entity. Businesses usually go public to raise capital in the hopes of expanding. Venture capitalists may use IPOs as an exit strategy - a way of getting out of their investment in a company.

The IPO process begins with contacting an investment bank and making certain decisions, such as the number and price of the shares that will be issued. Investment banks take on the task of underwriting, or becoming owners of the shares. The goal of the underwriter is to sell the shares to the public for more than what was paid to the original owners of the company. Deals between investment banks and issuing companies can be valued at hundreds of millions of dollars.

To provide an understanding of the essence of an IPO, its pros and cons, the roles of the main participants as well as the overall process of an IPO

• The initial public offering decision
• Prerequisites to an initial public offering
• Decision whether to undertake an initial public offering
• Overview of the IPO process