Capitalization tables (or cap tables) provide an analysis of a company’s percentages of ownership, equity dilution and value of equity. You need a clear picture of your company’s share ownership, so if you are still using spreadsheets, now is the time to get your cap tables in order with a platform like Astrella® by Equiniti.
As a first step, companies should familiarize themselves with the process and surround themselves with experienced partners.
For help transitioning your equity plans from private to public, learn about EQ's Equity Plan Solutions.
Selecting an underwriter is the first and most important step in the process, as an investment bank will guide and advise a company throughout the IPO process.
The underwriter files an S-1 Registration, which contains the company’s financial history, strategic initiatives and IPO share price range. Once the registration is approved by the SEC, the company is free to issue publicly traded shares.
After the issue is brought to market, the underwriter has a brief window to trade shares in order to influence and stabilize the share price.
Once public, the company now faces new challenges, like managing its shareholder base, and must be prepared to understand, balance and engage this audience.