As part of preparations for the IPO (Initial Public Offering) the company is accompanied by a professional, called an underwriter, who together with the company assesses the company's value, and accordingly how much money it can raise on the stock exchange in exchange for its shares. Thus, it is decided what percentage of all its shares will be offered to the public and what will be the minimum price per share.
In order for a company to be able to offer shares to investors, it must meet the many requirements specified in the Securities Law. In order for investors to decide whether they should purchase the company's shares and what price should be paid for a share, the company is required to prepare, with the help of the underwriter and the lawyers accompanying the issue, a thick document called a "prospectus" that includes extensive information about the company's operation, financial statements and the objectives of the issue.
