Roadshow
An IPO roadshow is a series of presentations and meetings conducted by a company's management team and underwriters with institutional investors across major financial centers to market the offering and build the order book.
The roadshow is the marketing phase of an IPO, typically lasting one to two weeks and taking place after the SEC has reviewed the preliminary registration statement. The company's CEO and CFO, accompanied by investment bankers from the underwriting syndicate, travel to — or in recent years, virtually meet with — institutional investors in cities such as New York, Boston, San Francisco, Chicago, and London. The goal is to persuade large fund managers to submit indications of interest for shares at or near the target price range.
During these meetings, management presents the company's business model, competitive advantages, financial performance, and growth strategy using a presentation — colloquially called a roadshow deck — that is derived from the prospectus. The presentations typically last 45 to 90 minutes and include a question-and-answer session. Underwriters pay close attention to the feedback from these sessions, as institutional investors often push back on valuation assumptions or flag concerns about specific risk factors.
Historically, roadshows were conducted entirely in person, requiring executives to travel across multiple time zones in a compressed schedule. The COVID-19 pandemic accelerated adoption of virtual roadshows, which allow management to meet with far more investors without the logistical burden of travel. Virtual formats have largely persisted even after pandemic restrictions lifted because of their efficiency, though in-person meetings with the largest potential investors often remain part of the process for major deals.
A separate type of meeting, called a one-on-one, is often reserved for the largest and most important institutional investors. These private sessions allow portfolio managers to ask more detailed questions than would be appropriate in a group setting. Feedback from one-on-ones is particularly valuable in calibrating the final offering price.
For retail investors, the roadshow presentation is often made publicly available on the company's investor relations website or through the SEC's EDGAR system after the offering is priced. Reviewing the roadshow deck alongside the S-1 can provide useful context about how management frames the investment thesis and which metrics they emphasize.