A Guide to the Initial Public Offering Process（指南首次公开发行(ipo)的过程）.pdfVIP

A Guide to the Initial Public Offering Process Katrina Ellis (kle3@cornel.edu) Roni Michaely (rm34@cornell.edu) and Maureen O’Hara (mo19@cornell.edu) January 1999 *All Authors are from Cornell University, Johnson Graduate School of Management, Cornell University Ithaca NY 14853. Michaely is also affiliated with Tel-Aviv University. A Guide to the Initial Public Offering Process A milestone for any company is the issuance of publicly traded stock. While the motivations for an initial public offering are straightforward, the mechanism for doing so is complex. In this paper, we outline the process by which companies are brought to market in an initial public offering. Our goals here are to delineate the specific steps that are required in an IPO, to demonstrate the complex inter-relationships between the advising, marketing, pricing, and trading functions of the IPO process, and to highlight the role played by the underwriter in a public offering. When a company wishes to make a public offering, its first step is to select an investment bank to advise it and to perform underwriting functions in connection with the issue. The selection process relies on the investment banker’s general reputation and expertise as well as on the quality of its research coverage in the company’s specific industry. The selection also depends on whether the issuer would like to see its securities held more by individuals or by in