Paris Startup Exit Masterclass - June 2018 Pros and cons of IPO, the IPO process and life after IPO.

1. TO GO OR NOT FOR AN IPO,
THAT IS THE QUESTION…
CHRISTINE LAMBERT-GOUE : C.LAMBERT_GOUE@YAHOO.FR

2. PUBLIC MARKETS

3. IPO RED ZONE
S&P 500 ‘FEAR INDEX’
Source : PwC IPO Watch Europe.

4. Capital raised (billion euros) Number of IPOs
EU IPOS 2017: 348 IPOs (+30%) €43.9B (+57%)
1Q18: 67 IPOs (+24%) €12.5B (+172%)
Siemens (€3.7B), DWS (€1.3B), Elkem (€0.8B)
Source : PwC IPO Watch Europe.

5. EURONEXT PARIS
Sources : Euronext, AMF, sociétés
■€2.4B in 2017 (vs. €1B in 2016)
■Avg. Euronext raises:
■A: 700 M€ (4 IPOs)
■C: 37 M€
■Growth: 10,7 M€ (10 IPOs)

6. WHY IPO ?

7. ARE YOU A FIT?
■ SIZE
●Amount raised
●Free Float (IPO = partial exit)
●Turnover depends on sector
■ BACKGROUND
●Profit
●POC / On market
●Academic References
●Scientific board
●Management team
■ INVESTMENT FUND (OPTIONAL)

8. VENTEUNIQUE.COM
■ SIZE
● Turnover 2017 : 77MEuros
● EBITDA : 9%
● PAX : 51
● Fund raising : 33MEuros (7 M increase in capital)
● Market Cap : 101MEuros
● Free Float: 32%
■ IPO
● Euronext Growth
● March 2018
● 1,8 times subscription rate
● Institutional investors = 96% (27 investors from 5
countries)
● Retail investors = 4% (more than 1000 individuals)
■ EQUITY STORY
● CAFOM (Habitat) gives more autonomy
● Consolidate the sector : furnishing distribution
● Maintain the same growth dynamics

9. WHY IPO ?
■LIQUIDITY
■FUNDING
■VISIBILITY
LIQUIDITY
(balance liquidity
growth, dilution)
COMPANY VALUE EASIER EXIT(S)
CAPITAL ACCESS
(sale, debt)
STOCK AS CURRENCY

10. OTHER BENEFITS
REPUTATION
STAFF MOTIVATION DECISIONS (1/3)
PERFORMANCE
(planning, etc.)

11. KALRAY
■ SIZE
● Turnover 2017 : 800kEuros
● EBIT: -7,6MEuros
● PAX : 58
● Fund raising : 43,5MEuros
● Market Cap : 95MEuros
● Free Float: 30%
■ IPO
● Euronext Growth
● 12th of June 2018
● 1,8 times subscription rate
● Institutional investors = 89% / subscription commitments
from existing shareholders and new prestigious investors
● Retail investors = 11%
● Lock-up : 180 days for the company, 1 year for the other
shareholders
■ EQUITY STORY
● Finance the technological roadmap
● Large-scale commercial development: Accelerate Kalray’s
presence on 2 markets : data centers and autonomous
cars.

12. IPO CHECKLIST

13. KEY CONSIDERATIONS
EQUITY STORY PRICE GOVERNANCE
FINANCE AND LEGAL IPO STRUCTURATION POST-IPO

14. EQUITY STORY
■COMPETITION
■POTENTIAL MARKET SIZE
■PIPELINE
■EXIT STRATEGY

15. VALUATION
■CREDIBILITY OF THE
PIPELINE
■NEWSFLOW UNTIL THE
GO-TO-MARKET
■CASHBURN

16. GOVERNANCE
■BEST-IN-CLASS STANDARDS
■SCIENTIFIC / STRATEGIC
COMMITTEE
■MANAGEMENT INCENTIVES

17. FINANCE AND LEGAL
■FINANCIAL INFORMATION
■LEGAL PREPARATION

18. IPO STRUCTURATION
■ AMOUNT
■ CASH-IN / CASH OUT
■ INSTITUTIONAL VS RETAIL INVESTORS
■ TYPOLOGY OF INVESTORS
■ PLACEMENT IN THE US, ASIA AND EUROPE
■ FREE FLOAT
■ LOCK-UP
■ SUBSCRIPTION COMMITMENTS
■ MARKET
■ TIMING

19. 4 STEPS TO IPO
 Structuration
 Timing
 Documentation
 Legal
 Financial
statements &
information
VISA AND PLACEMENTMARKETINGEQUITY STORYPROSPECTUS

20. 4 STEPS TO IPO
VISA AND PLACEMENTMARKETINGEQUITY STORYPROSPECTUS
 Business
Plan
 Equity
Story
 Research
report
 Valuation

21. 4 STEPS TO IPO
VISA AND PLACEMENTMARKETINGEQUITY STORYPROSPECTUS
 Pilot Fishing
 Marketing
Material
 Management
Training
 Pre-Marketing
- Roadshow
 Structuration

22. 4 STEPS TO IPO
VISA AND PLACEMENTMARKETINGEQUITY STORYPROSPECTUS
 Documentation
related to the
IPO
 Roadshows
 IPO results
 Aftermarket

23. POST-IPO
■LIQUIDITY
■ROADSHOWS
■COVERAGE
IPO = A NEW BEGINNING

24. ■STAY TOP OF MIND
■BUSINESS
■FINANCIALS
POST-IPO
NEWS FLOW

25. ■LIQUIDITY CONTRACT
■ANALYSTS RELATIONS
■SMALL/MID-CAP
STOCK NEWS SITES
POST-IPO
INFORMATION

26. ■E.G. BY INVEST SECURITIES
■1:1
■ROADSHOWS
■INVESTORS BREAKFASTS
& LUNCHES
■WORKSHOPS / SEMINARS
POST-IPO
RELATIONS

27. RED FLAGS

28. CLOSING

29. PREP PREP PREP

30. TRANSPARENCY

31. TIMING

32. EXPERTS

33. THANKS FOR YOUR
ATTENTION – Q&A