In June 2021 monday.com became a public company, and the bell ringing ceremony at nasdaq (even if the bell itself was actually a button you press on an ipad) was the end of long journey, during which we accumulated a lot of knowledge, that we now want to pass on to any founder who might IPO some day.
This week’s episode is the first in a series of episodes which will focus on the IPO process. Lior Krengel talks to Roy Mann and Eran Zinman, monday.com’s Founders & CEOs, about the basic things we think you should know before going into an IPO process. They do a high level overview of the process, and answer questions like – Why go public? Why now? How does this affect the company? And are there things you should take care of before going public?
This series of episodes is especially exciting for us because the information we will share with you in the upcoming episodes was not accessible for us when we first started preparing for the IPO – so this is a huge privilege for us to make this information accessible to all. Whether you’re an employee of a company that is about to go public and want to learn more about the process, a founder that is thinking about doing an IPO in the future, or just interested in hearing about our experience – this episode is for you.
IPO process timeline
The steps of the IPO process are an essential part – Each step here is a long, meaningful one, and it’s important you’ll know them:
Bank selection – The process of picking your lead bank/s.
Org meeting – The IPO process kicks off with all the players: two law firms, the banks, and the accountants. This is where they learn about the company, and we had a lot to prepare for this day.
Writing F1/S1 – Writing the prospectus – about 200 pages that define your offering. It’s an important document, and you’ll spend hours on end working with 40 different people to get it right.
TTW – Testing the waters (ttw1, ttw2) is a meeting with investors that will set the tone for your future relationship with them and help bankers gauge interest.
Syndicate – The stage you pick the other banks that will accompany you in the process and define their compensation model.
Analyst day – When all the analysts that cover your company get to hear you explain in your own words about the company. At this point, your deck is battel tested from the TTW, but here more depth is needed. This is an important stage as those analysts will cover the company post the IPO.
Roadshow – Two weeks of meeting more investors. This time a price range was already set for your shares, and you start seeing orders get in every day – the roadshow is the process of getting actual orders to build the book.
Pricing and closing the book – Deciding which investor gets how much, and deciding on the share price the company will IPO at.
IPO Day – When the stock starts trading.