An investment banker leads the initial public offering underwriting process when a company issues shares for the first time in the public markets (IPO). To work as an IPO underwriter, you must first earn a bachelor’s degree and then continue your education at a graduate level. Financial certifications will almost certainly be required. Working in some capacity at an investment bank can lead to a position as an IPO underwriter.
An IPO deal’s underwriting manager, or investment banker, oversees the stock market’s equity trading process. A banker who specializes in IPOs is in charge of not only the pricing and timing of the new issue, but also the financial burden of selling those shares to the general public. A successful candidate must have sales abilities in addition to the tactical skills required to become an IPO underwriter.
An IPO underwriter should be able to read the market and economic environment, as well as communicate effectively with potential investors, in order to successfully market a new stock. Because financial markets demand more than more traditional career pursuits, you must demonstrate an aptitude for working long and hard hours. Clients frequently turn to a previously established relationship with an IPO underwriter when choosing an IPO underwriter, which is why networking skills are so important.
To work as an IPO underwriter, you must first obtain a college diploma. Candidates should major in mathematics, accounting, economics, or another financial discipline to be considered. The largest investment banks frequently recruit candidates from the world’s best universities, so if at all possible, attending an Ivy League college will help your chances. A high grade point average can also help a candidate gain access to a firm. Investment banks that hire candidates expect them to have a postgraduate degree, such as a master’s of business administration.
Employee candidates for large investment banks are frequently recruited from the most successful schools. In order to become an IPO underwriter, it is also beneficial for prospective employees to seek out a recruiting firm ahead of time. In the financial services industry, networking and relationship building are critical, and an internship could be the first step toward becoming an IPO underwriter. Before becoming an investment banker who underwrites new issues, it may be necessary to accept another position in a financial services firm, such as a junior banker or associate. If that’s the case, you might be able to work on IPO deals with senior investment bankers and gain valuable skills for the future.