How can you make the underwriting process transparent for investors?

2 Conduct due diligence

Another important step to make the underwriting process transparent for investors is to conduct thorough due diligence on the issuer and the securities. This involves verifying the financial statements, the business model, the competitive position, the growth prospects, the risk factors, and the legal compliance of the issuer. It also involves evaluating the market demand, the pricing strategy, the valuation method, and the potential returns of the securities. The due diligence process should be documented and shared with the investors, as well as with the regulators and auditors, to ensure accuracy and credibility.

3 Engage with investors

A third step to make the underwriting process transparent for investors is to engage with them throughout the process and solicit their feedback and questions. This can be done through various means, such as online platforms, conference calls, webinars, meetings, and surveys. The purpose of engaging with investors is to educate them about the securities and the issuer, to address their concerns and objections, to gauge their interest and demand, and to build rapport and trust. The engagement process should be consistent and timely, and reflect the underwriting terms and the due diligence findings.

4 Monitor the market conditions

A fourth step to make the underwriting process transparent for investors is to monitor the market conditions and adjust the underwriting strategy accordingly. This involves analyzing the macroeconomic factors, the industry trends, the competitive landscape, the investor sentiment, and the regulatory environment that may affect the underwriting outcome. The market conditions may require the underwriter to revise the offering price, the allocation method, the underwriting fees, or even postpone or cancel the offering. The underwriter should communicate any changes or updates to the investors promptly and clearly, and explain the rationale behind them.

5 Provide post-offering support

A fifth step to make the underwriting process transparent for investors is to provide post-offering support and follow-up. This involves ensuring that the securities are delivered and settled according to the underwriting terms, that the issuer fulfills its obligations and commitments, that the investors receive their dividends or interest payments, and that any disputes or issues are resolved. It also involves providing ongoing information and analysis on the performance and prospects of the securities and the issuer, and maintaining a long-term relationship with the investors. The post-offering support should be professional and responsive, and demonstrate the underwriter's accountability and reliability.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?