Companies that approach an IPO as a discrete event — something that happens over a few frantic months — consistently encounter avoidable problems. The ones that close successful listings treat it as a process with a defined beginning, a clear sequence of stages, and specific milestones that must be achieved before the next stage begins. The sequence described below is broadly applicable to listings on TSX-V, ASX, AIM, TSX, and the major exchanges — though specific requirements and timelines vary.
Stage 1: The Decision and Readiness Assessment
Timeline: Months 1–2
Before engaging advisors or beginning formal preparation, management should conduct an honest internal assessment of IPO readiness: financial profile, governance state, cap table cleanliness, equity story, and management capacity. The result should be a clear-eyed view of what is ready, what needs work, and what the realistic timeline to listing-ready looks like. This is also the stage at which exchange selection is made — the exchange shapes every subsequent decision, from governance requirements to the investor base targeted.
Stage 2: Advisor Appointments
Timeline: Months 2–3
The core IPO advisory team typically includes: a lead manager / investment bank (or broker for smaller listings), legal counsel (company-side and underwriter-side), auditors, and a financial PR and investor relations adviser. The quality of these appointments — particularly the investment bank and legal team — significantly affects the quality of the outcome. Banks with active coverage in the company's sector and exchange will produce better investor introductions and more accurate pricing than generalists. Engage advisors early and select for sector fit, not brand name alone.
Stage 3: Audit and Financial Preparation
Timeline: Months 3–8 (parallel with other stages)
Two or three years of audited financial statements prepared to IFRS or US GAAP are required for virtually all exchange listings. If they don't exist, this stage dominates the timeline — an audit of multiple years of historical financials typically takes 3–6 months and often reveals accounting adjustments, revenue recognition issues, or related-party transactions that require resolution before the prospectus can be filed. A financial model — covering the 3-year forecast period with clearly documented assumptions — is prepared alongside the audit and forms the basis for the investment bank's valuation analysis.
Stage 4: Prospectus Preparation
Timeline: Months 4–9
The prospectus is the legal document used to offer shares to investors. It contains: the company's business description, financial statements, risk factors, use of proceeds, management backgrounds, governance arrangements, and all material information an investor needs to make an informed decision. It is drafted collaboratively by management, legal counsel, and the investment bank — with the auditors providing comfort letters on the financial content. The risk factors section is the most legally sensitive — it must be comprehensive without being so alarming as to undermine investor confidence. Regulators review the prospectus and issue comment letters that must be addressed before the document is cleared for distribution.
Stage 5: Pre-Marketing and Investor Education
Timeline: Months 8–10
Before the formal roadshow, the investment bank's equity research team publishes an initiation report on the company — providing institutional investors with independent analysis of the investment case, valuation, and risks. Management simultaneously begins introductory meetings with cornerstone investors — large institutional investors who may anchor the book with a significant commitment at a defined price. Cornerstone commitments, where they exist, provide price certainty and signal quality to subsequent investors in the book-building process.
Stage 6: The Roadshow
Timeline: Months 10–11 (typically 2 weeks)
The roadshow is the marketing phase of the IPO: management presents the investment case to institutional investors across multiple cities — typically New York, London, Toronto, Sydney, and relevant regional centres depending on exchange and investor targeting. The CEO and CFO conduct 8–12 investor presentations per day for 10–14 days. This is the period of maximum management exhaustion and maximum commercial importance — the investors met on roadshow form the initial institutional shareholder base. Quality of presentation, depth of management answers, and ability to handle difficult questions on valuation, competition, and risks determine how the book fills.
Stage 7: Book-Building, Pricing, and Allocation
Timeline: Final days of roadshow
Book-building is the process by which the investment bank collects investor indications of interest at various price points, assembles the "book," and uses it to determine the IPO price. Pricing is typically set at the level that allows the offer to be 2–4x oversubscribed — providing enough investor demand to support the share price in early trading without leaving too much value on the table. Share allocation — who gets how many shares at the IPO price — is a significant exercise of the investment bank's discretion. Long-term institutional holders are typically favoured over short-term traders.
Stage 8: Listing Day and Stabilisation
Timeline: Listing date
On listing day, the company's shares begin trading on the exchange. The investment bank typically retains a stabilisation mechanism — the ability to buy shares in the market to prevent the price falling significantly below the IPO price in the immediate post-listing period. A standard lock-up agreement prevents major shareholders (management and pre-IPO investors) from selling shares for 6–12 months post-listing, preventing immediate selling pressure from undermining the market. The period immediately following listing is often described as the most demanding for management — the ongoing obligations of a public company begin immediately, while the business still requires full operational attention.
"The roadshow is the sprint. The governance build, the audit, the prospectus — that is the marathon that makes the sprint possible."
Planning Your Path to Public Markets?
OAKRG advises companies on IPO readiness, exchange selection, capital markets strategy, and post-listing investor relations across TSX-V, ASX, London AIM, and major exchanges globally.
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