when a company decides to go public the members of the investment firm responsible to underwrite or issue the ipo travel around the country in a roadshow to present the investment opportunity to potential investors most roadshows include stops in major cities like boston chicago los angeles and new york city 
a successful roadshow is often critical to the success of the ipo the goal of the roadshow is to generate excitement about the company and its ipo by traveling to different cities underwriters introduce the ipo to institutional investors analysts fund managers and hedge funds to interest them in the security the roadshow also provides an opportunity for the underwriters to introduce the company s management and for investors to hear management s vision and goals for the company the goal of the roadshow is to generate enthusiasm surrounding the company s upcoming ipo which means the success of the ipo depends on a successful roadshow roadshow events may attract hundreds of prospective buyers interested in learning more about the offering in a face to face setting and online events may include multimedia presentations and question and answer sessions many companies may hold smaller private meetings in the months and weeks leading up to the ipo while the majority livestream some of their events to those who can t attend some of the topics covered during a roadshow include the company s history and any future plans other information may include the roadshow is essential to the ipo since it provides a forum where the company can communicate directly with potential investors to address any concerns or highlight successes the underwriters also use information gathered from investors to complete the book building process which involves gathering prices potential investors are willing to pay for the offering once a roadshow is complete the final prospectus is created and distributed to potential investors this prospectus is also filed with the securities and exchange commission sec an initial price for the offering is set based on the information gathered during the book building process and the ipo date is solidified special considerationsnot all roadshows involve an ipo in fact there are cases where companies travel across the country to talk to investors even when they aren t going public these are called non deal roadshows ndrs these roadshows occur when executives hold discussions with current and potential investors but no equity or debt security is offered ndrs are carried out to provide public information to investors including updates on the company s existing business and vision for the future ndrs involve meeting with key investors to keep them updated on how the company is performing example of a roadshowchinese e commerce giant alibaba group baba posted the largest ipo ever by raising 25 billion in 2014 while the underwriters involved took home 300 million the ipo was so successful that the stock price surged 38 in its debut but enthusiasm for the ipo began well before the stock began trading the roadshow included the financial numbers but also a video history of the company narrated by co founder and chair jack ma the roadshow was such a success with investors that it s likely the reason why the ipo price range was increased to 66 to 68 from the earlier published 60 to 66 range although the increase in the price range may not appear to be impressive it s important to remember that the company sold over 300 million shares during its ipo 