How Do Companies Go Public in the US? Unveiling the IPO Process

How Does a Company Go Public in the U.S.? Let's Reveal the Mystery!

In recent years, an increasing number of Chinese companies have chosen to seek financing and development opportunities in the U.S. capital market. Whether it’s tech giants like Alibaba and JD.com or emerging industry representatives such as XPeng Motors, they have all gained widespread attention and support through their U.S. listings. However, for many ordinary investors and entrepreneurs, the process of going public in the U.S. seems complex and mysterious. So, how can a company successfully go public in the U.S.? This article will provide a detailed interpretation of the main processes involved in U.S. listings based on recent relevant cases.

The First Step Defining Listing Goals and Strategic Planning

The first step in listing in the U.S. is to clearly define the company's listing goals and strategic direction after listing. This usually requires in-depth discussions by the senior management team and decisions made in conjunction with current market conditions. For example, at the beginning of 2025, Luckin Coffee announced plans to re-enter international markets, including possibly listing in the U.S., following a significant restructuring. Clearly, this decision was the result of long-term consideration, not only to meet funding needs but also to enhance brand influence and international competitiveness.

When formulating a listing plan, it is also necessary to consider industry trends and the performance of competitors. For instance, with the rapid development of the new energy vehicle industry, emerging automakers like NIO and Li Auto have listed on U.S. stock markets, providing valuable experience for other similar companies. During this phase, enterprises must not only evaluate whether their own conditions meet the requirements for listing but should also closely monitor changes in the external environment to ensure the optimal timing for listing.

The Second Step Hiring Professional Institutions and Completing Due Diligence

Once the listing goals are determined, the next step is to build a professional advisory team. These teams typically consist of investment banks such as Morgan Stanley and Goldman Sachs, law firms like Davis Polk Wardwell LLP, and accounting firms. They will help the company organize financial data, optimize corporate governance structures, and draft prospectuses that meet SEC standards.

For example, in the recent case of AMTD Digital Inc., which completed its IPO process in the first half of 2025, the professional team it hired played a crucial role. In particular, during the due diligence phase, all parties need to conduct a comprehensive review of the company's history, business model, and profitability to ensure that all disclosed information is true and accurate. If any potential issues are found, they must be promptly rectified; otherwise, the listing application may be rejected.

The Third Step Submitting the Registration Statement and Waiting for Review

After completing the preparations, the company needs to submit a Form S-1 registration statement to the SEC. This document contains basic information about the company, financial statements, risk factors, etc., and is one of the key references for investors to understand the company. It is worth noting that the SEC will conduct a strict review of this document, which usually takes several weeks or even longer.

In April this year, the well-known cross-border e-commerce platform Shein also plans to list in the U.S. Although specific details have yet to be announced, it can be foreseen that it will face many challenges in the preparation stage, especially how to balance differences between regulatory rules in China and the U.S. This has been one of the common difficulties faced by Chinese companies listing in the U.S. in recent years.

The Fourth Step Roadshows and Pricing

After passing the SEC review, the company enters the roadshow phase. A roadshow refers to the activity where underwriters lead the company's management team on a tour of major cities around the world for promotional activities aimed at attracting interest from potential investors. During this phase, the company not only needs to showcase its advantages but also answer various questions raised by investors.

For example,, which successfully went public at the end of last year, attracted a lot of attention through multiple online and offline roadshows. Ultimately, based on a comprehensive consideration of market demand, its stock issuance price was set at $19 per share, slightly below the expected range. This flexible adjustment strategy often helps the company perform better in subsequent trading.

The Fifth Step Official Listing and Trading

The final step is official listing and trading. Once all preparations are complete, the company rings the opening bell at the New York Stock Exchange or NASDAQ, marking its official transformation into a publicly traded company. At this point, the company's stocks will be freely traded on the open market for investors to buy and sell.

It is worth mentioning that in recent years, due to geopolitical factors, the performance of some Chinese companies in the U.S. market has not been entirely satisfactory. For example, the ChiNext index has experienced significant fluctuations over the past year. However, this has also prompted more companies to start thinking about the importance of diversified financing channels, such as simultaneously listing in the Hong Kong Stock Exchange or other regional capital markets.

Conclusion

In summary, going public in the U.S. is no easy task, but as long as the steps are followed systematically, there is a high probability of achieving the goal. Of course, besides the strict procedures, maintaining good communication skills and keen market insight is equally essential. It is hoped that this article can provide some valuable reference information to help more excellent Chinese companies step onto the world stage!