The tips for going public. A successful investment banker (Arie Kravchin, director at Merrill Lynch) shares his advice on the IPO process.

1. Roadmap to
Case study from Eduson.TV
course
SUCCESSFUL
IPO
Arie Director of Investment Banking,
Kravtchin Bank of America Merrill Lynch

2. important to choose
It is
appropriate time to launch an IPO

3. e
it is important to choos
Ipo
te time to l aunch an
appropria
try, state of
The important factors are barriers to en
onomy upon
the securities market and the region’s ec
e such that it
the whole. Sometimes, the conditions ar
, in the
kes sense to postpone IPO. Foe example
ma
ilian
er of 2013, the management of Azul Braz
summ
re too
s decided that the market conditions we
Airline
opped
ble - Sao Paulo stock exchange index dr
unfavora
r’s stocks
by 18% and the prices of their competito
IPO was
dropped by 35%. Therefore, the planned
postponed for an indefinite term.

4. Prepar ation for IPO
must be started
«long before»

5. prepar ation for IPO
re»
tarted «Long befo
must be s
1
e entire process takes from 3 months to
Usually, th
y’s
year. It generally depends on the compan
availability of
preparedness level and, above all, on the
three years
audited financial statements for the last
of work.

6. be prepared
for organizational
expenses

7. be prepared
s
ational expense
for organiz
mn when
average, a company spends more than $1
On
ancial
preparing to IPO (listing fee, legal and fin
begins,
consulting, etc.). As soon as stock trading
on the
expenses become even higher - $1.5 mn
new personnel,
average (for audit, Board of Directors,
PR, etc.).

8. f
ok up to the experience o
you should lo
successful IPOs
in the current year

9. perience
e ex
You should look up to th
Of successful
ipos
ear
in the current y
the
ors that operated to the advantage of
The fact
probably be
IPOs when they were launched will most
’ readiness to
relevant for your company, too: investors
ustry, etc.
risk, interest towards your sector of ind

10. oose your book-runner
Ch
thoroughly

11. choose your book-runn
er
thoroughly
c offering
The organization to be engaged in publi
t bank),
(which is often an international investmen
relations with
should have appropriate experience and
demand for
tential investors. This will help create a
po
-runner
any’s stock offering. Naturally, the book
comp
services
not at the same time provide the same
must
to your competitors.

12. it is important to set
a right IPO amount

13. it is right to set
a right ipo amount
larger
scale transactions more often attract a
Large. At the same
number of investors, especially big ones
nagement and
time, it may be more difficult for the ma
at the stage of
book-runners to create a high demand
book building.

14. ect expert opinions
coll
of the company

15. collect expert opinions
of the company
ment by
vestors highly rate the company assess
In
is managed
tside specialists: how well the company
ou
e IPO
ether the business plan is viable, what th
and wh
itive
goals are, whether there are any compet
sector is
advantages and whether the company’s
growing.

16. Perform the due
diligence

17. perform the due
diligence
d of its
ity of the company’s business scheme an
Clar
e
structure is not only required for defens
assets
le
against tax and other claims. An impeccab
e not
reputation will attract investors that ar
inclined to risk.

18. e management is to meet
th
the investors before
ipo and impress

19. the management is to mee
t
the investors before
ipo and impress
promotion.
ct contact is crucial for the company’s
Dire
als» of
Therefore, you should perform «rehears
d thoroughly
presentations during the road-show an
plan your behavior strategy.

20. ectors should include
The board of dir
an independent director

21. ould
the board of directors sh
include
or
dependent direct
an in
e company,
A skilled specialist, unconnected with th
areholders,
who defends the interests of minority sh
mpany in their
will attract investors and upvalue the co
sometimes
es. However, to find a «right» person is
ey
very hard.

22. take a course
today!