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