going public? how long does it take?

Question

I know of a company that is going public soon, but they themselves are not sure the exact date. does this sound right? do companies not know the exact day they will go public on a stock exchange?

thanks

Answer 1

Technically, I don't recall hearing about a time limit to go public. There are two types of public offerings. Normally a company will make an IPO, which is an Initial Public Offering. This is usually done with a limit number of investors and offered semi-privately through channels other than brokerage houses or underwriters. It isn't necessary to make an IPO first, but could help boast your stock once it is offered to the general public. Later, a company may make what most people would consider a public offering which will be offered to the general public. These stocks will be offered OTC or Over the Counter. In other words, they won't be offered on any stock exchange. There are many regulations which must be followed to make a public offering of stock. Getting on one of the major stock exchanges can takes time. I don't recall how long off hand, but there is a minimum amount of time a company needs to be in business before they can be listed on the the NYSE or AMEX, for instance. Being listed on one of the stock exchanges has nothing to do with being a public company. You can be public without being listed. A company should know when they will be going public. There are many hoops to jump through when you go public.

Answer 2

It takes 17 years.