🤔 So a Company Just Filed to Go Public - Now What?
You may have seen the headlines: "Company X files S-1 with the SEC!" But what does that actually mean for you as an investor? Filing an S-1 (for U.S. companies) or F-1 (for foreign companies) is really just the starting gun of a longer race. The company still has weeks - sometimes months - of work ahead before shares ever trade on a stock exchange.
Understanding the steps between the initial filing and the first day of trading can help you prepare, do your research, and decide whether - and when - to invest. If you are new to IPO filings, our guide on S-1 and F-1 filings explained is a great place to start.
💡 Quick Context
An IPO filing is the official document a company submits to the SEC asking for permission to sell shares to the public. It contains everything about the business - financials, risks, leadership, and plans for the money it raises. But the filing itself does not mean shares are available to buy yet.
🗓️ The IPO Timeline: Step by Step
The entire IPO process from initial filing to the first day of trading typically takes 3 to 6 months, though it can be shorter or longer depending on SEC feedback and market conditions. Here is what happens at each stage.
Initial S-1 / F-1 Filing (Day 0)
The company submits its registration statement to the SEC. At this stage, the document often has placeholder pricing (you will see "$XX.XX" or "TBD" where the share price should be). The filing becomes publicly visible on the SEC's EDGAR database, so anyone - including you - can read it right away.
SEC Review Period (Weeks 2-8)
The SEC's Division of Corporation Finance reviews the filing for completeness and clarity. They send the company a "comment letter" with questions and requests for additional disclosure. The company responds and files amendments (called S-1/A or F-1/A). This back-and-forth can happen multiple times. Each amendment is also public, so you can track how the filing evolves.
The Roadshow (1-2 Weeks)
Once the SEC is satisfied, the company's executives travel (physically or virtually) to meet large institutional investors - think mutual funds, pension funds, and hedge funds. They pitch the company's story and gauge demand at different price levels. Retail investors are typically not invited to the roadshow, but some brokerages now offer IPO access programs that let individual investors participate.
Pricing (1-2 Days Before Trading)
Based on roadshow demand, the company and its underwriters (investment banks) set the final IPO price. A final amendment is filed with the actual price and number of shares. Institutional investors who placed orders get their share allocations. The price is typically announced after market close the evening before the first trading day.
First Day of Trading
Shares begin trading on the stock exchange (NYSE or NASDAQ). The opening market price is often different from the IPO price - sometimes dramatically higher (a "pop") or lower. This is the first time most retail investors can buy shares on the open market.
💡 Pro Tip
You can track all of these stages for recent IPOs on our IPO Intelligence page. We monitor new filings daily and provide AI-powered summaries so you do not have to read hundreds of pages of legal language yourself.
🤫 The Quiet Period: Why the Company Goes Silent
During the IPO process, SEC rules impose a "quiet period" that restricts what the company and its underwriters can say publicly. There are actually two quiet periods to know about:
📋 Pre-IPO Quiet Period
Begins when the company files its S-1 and lasts until 25 days after the stock starts trading.
- • The company cannot make promotional statements about the IPO
- • Management cannot do media interviews hyping the stock
- • All material information must be in the SEC filing
📊 Research Quiet Period
Underwriter analysts cannot publish research reports on the company for 25 days after the IPO.
- • No "buy" or "sell" recommendations from underwriter analysts
- • Prevents conflicts of interest
- • When it expires, analyst reports can move the stock price
⚠️ What This Means for You
During the quiet period, the S-1/F-1 filing is your best source of information about the company. That is why reading - or at least skimming - the filing is so important. You will not get much else from the company until after trading has been underway for a few weeks.
🔒 The Lockup Period: When Insiders Can Sell
One of the most important things for new IPO investors to understand is the lockup period. This is a contractual agreement (usually 90 to 180 days) that prevents company insiders - founders, executives, early investors, and employees - from selling their shares immediately after the IPO.
🗓️ Typical Lockup: 180 Days
Most IPOs have a 180-day (roughly 6-month) lockup period. During this time, insiders holding millions of shares are legally prevented from selling on the open market. The exact terms are disclosed in the IPO filing under the "Shares Eligible for Future Sale" section.
📉 Why Lockup Expiration Matters
When the lockup expires, insiders can suddenly sell large blocks of shares. This flood of new supply can push the stock price down - sometimes significantly. Many experienced investors watch lockup expiration dates closely because they can create buying opportunities or signal that insiders want to exit.
💡 Investor Takeaway
Always check the lockup expiration date before buying shares of a recently public company. If the lockup is about to expire, you might want to wait and see what insiders do before investing. You can find lockup details in the IPO filing and track insider activity through SEC filings and CIK lookups.
🙋 How Can Retail Investors Participate?
Historically, IPOs were almost exclusively an institutional game. But that has changed in recent years. Here are the main ways everyday investors can get involved:
🏦 Brokerage IPO Access Programs
Several brokerages now offer IPO access to retail customers:
- • Fidelity, Schwab, and TD Ameritrade offer IPO participation
- • Some require minimum account balances
- • Allocation is not guaranteed - demand often exceeds supply
- • You buy at the IPO price, before public trading starts
📈 Buying on the Open Market
The most common approach for retail investors:
- • Buy shares once trading begins on the stock exchange
- • No special access required - use any brokerage account
- • Price may be higher (or lower) than the IPO price
- • You can set limit orders to control the price you pay
⏰ The "Wait and See" Strategy
Many seasoned investors skip IPO day entirely and wait 3 to 6 months before buying. Why? IPO-day prices are often inflated by hype, and the lockup expiration can create better buying opportunities. Plus, after a few quarters of earnings reports, you will have much more data to judge the company's performance. There is no rush - a good company will still be a good investment months from now.
🔍 Key Dates and Events to Watch
Once a company files its S-1 or F-1, here is a checklist of dates and events you should track as an investor:
Amendment Filings (S-1/A)
Each amendment can reveal new financial data, updated risk factors, or changes to the deal structure. Read the latest version for the most current picture.
Price Range Announcement
When the company files an amendment with an actual price range (e.g., "$18 to $21 per share"), the IPO is getting close. This tells you how the company values itself.
Final Pricing
The final price is set after the roadshow. If it is above the initial range, demand is strong. If it is below, demand was weaker than expected - both are important signals.
First Earnings Report
The first quarterly earnings report as a public company is a major milestone. It shows whether the company is living up to the promises made in its IPO filing.
Lockup Expiration Date
Mark this on your calendar. A surge of insider selling after lockup expiration can significantly impact the stock price.
🚀 Stay Ahead with Stockadora
Tracking the IPO process across multiple companies is time-consuming. That is why we built tools to help you stay informed without spending hours reading SEC filings.
Ready to research your next IPO?
Browse the latest IPO filings with AI-powered summaries, or explore our educational guides to sharpen your investing knowledge.
Important Disclaimer
This content is AI-generated and for educational purposes only. The information provided about the IPO process is based on publicly available sources and general knowledge. This is not financial advice - always conduct your own research and consult with qualified financial advisors before making investment decisions. IPO investments carry significant risks, including the potential loss of your entire investment, and may not be suitable for all investors.
💡 Key Takeaways
Remember This
An S-1/F-1 filing is just the beginning - the full IPO process takes 3 to 6 months from filing to the first day of trading.
The quiet period means the SEC filing is your best source of information about the company during the IPO process.
Watch the lockup expiration date (usually 180 days after IPO) - insider selling can create price volatility and potential buying opportunities.
There is no rush to buy on IPO day. Many successful investors wait months for the hype to settle and more data to become available before making a decision.