Table: A Web Service for IPOs
i-Deal LLC's new Web service helps investment bankers manage public offerings. The bankers subscribe to the service for a yearly fee--in addition to paying $15,000 to $30,000 per offering. Here's how it works:
SETTING UP THE DEAL. Once investment bankers land an IPO deal, the company that is going to go public zaps its information over the Web into i-Deal's electronic system. Info from various underwriters is put in one place--but people see different slices of it, depending on their role.
MARKETING AND ROAD SHOW. As investment bankers and the company execs hit the road to sell the issue, they tap into i-Deal for info about investors they're about to meet. Separately, brokers enter investors' interest in buying shares at a certain price into i-Deal.
IPO DAY. The investment banks co-managing the offering view all of the orders to gauge demand for the stock, so they can set a price. Throughout the offering, they--and the IPO company execs--can track incoming orders on the fly.
WRAPPING UP. When the stock begins selling, the investment bankers zap confirmations of sales to investors. The transaction data are automatically routed into the banks' computing systems for processing. That way, investors and the banks can quickly settle accounts.