DRHP Preparation

Q: What is a DRHP?

The Draft Red Herring Prospectus is the preliminary offer document filed with the regulator when a company plans an IPO, containing detailed information about the company, its business, management, financials, risk factors, and the proposed offering, updated after regulatory review towards the final offer documents.

Preparing the Draft Red Herring Prospectus That Anchors Your IPO

The Draft Red Herring Prospectus (DRHP) is the central document of an IPO — the detailed offer document filed with the regulator that describes the company, its business, financials, risks, and the offering. It undergoes close regulatory scrutiny and is relied upon by investors, so it must be comprehensive, accurate, and consistent, with financial information prepared to exacting standards. A well-prepared DRHP is fundamental to a smooth review and a credible offering; weaknesses can cause delays, queries, or worse.

Our DRHP preparation services support the development of the offer document — with particular focus on the financial information, restated financials, and related disclosures — working closely with the merchant banker, legal counsel, and other advisers who lead the drafting. We help ensure the financial content is robust and consistent. This service is a key part of our IPO advisory offering and connects with our IPO readiness assessment and SME IPO advisory services.

Our DRHP Preparation Services

Financial Information

Preparing and presenting the financial information for the DRHP.

Restated Financials

Support with restated financial statements for the offer document.

Financial Disclosures

Drafting financial disclosures and related sections accurately.

Consistency Checks

Ensuring financial data is consistent throughout the document.

Diligence Support

Supporting the diligence underpinning the offer document.

Advisor Coordination

Working with the lead manager and legal counsel on the DRHP.

Benefits of Professional DRHP Support

Robust, accurate financial information in the offer document
Well-prepared restated financials and disclosures
Consistency of financial data throughout the DRHP
Smoother regulatory review with fewer financial queries
A credible document that investors can rely on
Effective coordination with the lead manager and advisers

Frequently Asked Questions

What is a DRHP?

The Draft Red Herring Prospectus (DRHP) is the preliminary offer document filed with the regulator when a company plans an IPO. It contains detailed information about the company, its business, management, financials, risk factors, and the proposed offering. After regulatory review and observations, it is updated and progresses towards the final offer documents.

Why is the DRHP so important?

The DRHP is the primary document on which the regulator's review and investors' decisions are based. It must be comprehensive, accurate, and consistent, particularly its financial information. A strong DRHP supports a smoother review and a credible offering, while errors or weaknesses can lead to queries, delays, or reputational concerns.

What is your role in preparing the DRHP?

The DRHP is typically drafted under the lead of the merchant banker and legal counsel, with input from various advisers. Our focus is on the financial information — including restated financials, financial disclosures, and ensuring consistency of financial data — and on supporting the diligence behind it, working closely with the other advisers.

What are restated financials?

Restated financials are the company's financial statements presented in the manner and format required for the offer document, often covering several years and adjusted for consistency and comparability in line with the applicable requirements. They are a critical part of the DRHP, and preparing them properly requires careful, experienced financial work.

How do you ensure the financial information is reliable?

We prepare and review the financial information with rigour, ensure restated financials and disclosures are properly presented, and cross-check that financial data is consistent throughout the document. We also support the diligence process. This disciplined approach helps ensure the financial content of the DRHP is robust and withstands scrutiny.

Build a DRHP That Stands Up to Scrutiny

DRHP preparation support focused on robust, consistent financial information for your IPO.