There are many capital markets around the world, and the procedures for listing a company is different in every market. Capital market is also a financial market where companies raise capital to finance their business. The companies must apply based on the business sector. It is also important that companies know which market they want to be listed and which market they can afford to be listed. With in capital market the are several different markets where companies can be listed, some of the markets can help companies to raise more capital but it can be costly and the requirements are more difficult.
Stage 1, Preparation and submission
First stage of listing a company is to prepare the documents and make proposal. Companies must make a proposal for Initial Public Offering (IPO). The companies must also know the documents required and prepare all the documents and prospectus for submission. Companies should submit all the documents and proposals when they are fully prepared. If it is first time the company is trying to be listed then it is most advisable to hire professionals to help with all the documents. This stage usually will take about 10 to 12 weeks depending on the country and market.
Stage 2, The process of application
In the second stage companies will make public exposure of company prospectus, after that the regulators will ask for additional documents if required or comment on the prospectus. At the second stage the companies will also visit the company to make sure that the company is legit. Finally the regulators will evaluate and approve. This stage will take about 10 weeks but it could take more, depending on the regulators.
Stage 3, Registration of prospectus
Companies will update their prospectus before registration and lodgement of prospectus. The companies will make all the necessary payments for registration. After this the companies will start making plans for marketing. The stage 3 takes about 5 weeks.
Stage 4, Launching of prospectus
Initial Public Offering will be made in this stage, the underwriters will set the best price to offer for IPO and the number of shares to offer. The underwriters are the investment companies or banks that buys or sponsors the shares from the company and sells it to the public as IPO. Usually this stages takes about 1 week to 2 weeks.
Stage 5, Listing the company
At the final stage the shares will be allocated according to the category, for example if the company is food production company then it will be listed accordingly. The trading will be live on capital market. The final stage can take from 2 to 3 weeks.