Starting December 1st, all IPOs must list within 3 days of their window closing.<\/p>\n
An optional window was launched from September 1st to December 1st, 2023. In this window, the companies going public could choose to indicate a T+6 timeline on the prospectus or a shorter one. However, most companies were attempting to list within 3 days even if a longer timeline was indicated on the prospectus.<\/p>\n
No, the process steps remain the same. However, different organizations involved, like banks, exchanges, and registrars, will complete their tasks faster. Thus, the T+6 timeline has shortened to T+3, even though process complexity hasn\u2019t decreased.<\/p>\n
Remarkably, many IPOs have listed in 3 days in recent months during the optional period.<\/p>\n
We have been smartly planning IPO dates. With a 3-day working timeline, IPOs closing on Wednesday or later benefit from extra weekend days. This eases the workload for exchanges, registrars, and banks.<\/p>\n
For example, the Tata Technologies IPO closed on November 24th and is listing on November 30th. Excluding the three holidays from November 25th-27th, it meets the T+3 requirement.<\/p>\n
Hopefully, over the next few months, all market intermediaries will gain confidence to close an issue on a Monday or a Tuesday. This could enable same-week listings. In any case, this is still a feather in our caps. \ud83c\uddee\ud83c\uddf3\ud83d\ude80<\/p>\n