IPO Intelligence • The IPO Process

What Is an IPO Prospectus?

How to read the document investors actually get.

Cluster: The IPO Process • Type: Evergreen Guide • Pillar: IPO Intelligence

Prospectus vs S-1

S-1 is container. Prospectus is selling document inside. Every buyer must receive it.

Red Herring vs Final

Preliminary (red herring) has range, no final price. Final 424(b) has final price and proceeds.

How to Read It

1. Risk Factors

Start here. Look for customer concentration, burn, regulatory risk. Boilerplate = red flag.

2. Use of Proceeds

General corporate purposes = growth. Large secondary portion = insiders cashing out.

3. Dilution

Book value $2 vs you pay $20 = $18 dilution. Normal for tech.

4. Principal Shareholders

Who owns what after. VCs selling 0% = strong signal.

5. MD&A and Financials

Check SBC as % revenue, gross margin trend, net retention.

Back to hub: The IPO Process

Continue The IPO Process

← Back to The IPO Process Hub Step-by-Step Underwriter S-1 Filing Pricing IPO Day