Analysis

First steps for going public

Doing Business in Brazil

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The process of going public takes around 10 weeks on average and starts when the company undertakes the following actions:

1.Preliminary analysis of the advisability of going public

The reasons for the company to go public should be considered at this time, together with its financial situation, plans and willingness to be more transparent. Analyses should also be made of the prior need to for corporate restructuring, the political situation, the macroeconomic situation and its relations with the market and, particularly, whether it is a convenient time for going public. The more appropriate security and type of operation to be employed should also be checked.

2.Choice of lead coordinator

The law requires that the process of going public be conducted by a financial intermediary – either a brokerage firm, a multiple service bank, an investment bank or a dealer – which assumes the role of coordinator of the operation. In order to ensure the security of the company, it is recommended that it not be bound to any regular financial partner, but search the market for one that really has the necessary qualifications and presents the best operational model at an appropriate cost.

After these actions, 12 more steps will be necessary to complete the process.

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