Companies planning to operate on a large scale need a huge pool of financial resources that is difficult to create from limited contributions by private investors. The companies have to float an initial public offering (IPO) to attract funds from general public. For this, there are a number of formalities, legal requirements, and documentation that needs to be done within the stipulated time.
IPO advisory services help their clients sail smoothly through the required procedure for issuing an IPO. They suggest their clients the right time for introducing the IPO, what are the formalities and minute details of the procedure, help in preparing the legal documents, and even advise on the selection of underwriters for the issue.
Prospectus or the Statement in lieu of prospectus is the most important documents for raising an IPO. It contains all important information that a prospective investor needs to know about the company and the issue details like the face value and the type of issue, application amount, mode of payment, minimum number of shares to be applied for, and many more.
These advisory services take the task of preparing the prospectus. With the cooperation of the client, they draft the prospectus in a manner that convinces the investors to invest their funds in the company. However, due consideration is taken not to present misleading information and dupe the investors.
The advisory services also prepare online presentations that the client requires to discuss the purpose and need of raising funds with its business partners.