IPO Process

Roughly: org meeting (T-6 months) → due diligence and S-1 drafting → first SEC filing → SEC review and amendments → roadshow (typically 7–10 days) → pricing the night before listing → trading begins.

Underwriters earn a gross spread, typically 6–7% of proceeds for traditional IPOs (lower for very large or follow-on offerings).

Underwriters set an initial range, build the book during the roadshow, and price the night before listing — almost always at a discount to where they think the stock will trade. The "first-day pop" is partly a feature (rewarding allocated investors, building momentum) and partly criticism (money left on the table).

The 180-day lockup prevents insiders from selling immediately after listing.