In April 2022 we had the pleasure to participate on the panel with our friends from the London Stock Exchange and Taylor Wessing LP to discuss IPOs and how ScribeStar helps make them happen.
London Stock Exchange has hosted the video on their web platform Spark. You can watch it here: https://www.lsegissuerservices.com/spark/how-to-ipo-video-on-demand
š If you want to know how to prepare for an IPO, how long it takes, who’s involved, and about tech that helps? š Watch the video and have all your questions answered by Neil ShahĀ from theĀ LSEG (London Stock Exchange Group),Ā Russell HoldenĀ fromĀ Taylor Wessing UKĀ andĀ Adam ShawĀ fromĀ Scribestar. The event was hosted byĀ London & Partners, thanks toĀ Imogen GrubinĀ and moderated byĀ Damir CimerĀ fromĀ Scribestar.
Some quick takeaways:
š§ WHAT IS AN IPO:Ā #IPOĀ stands for an ‘initial public offering’ of shares in a company toĀ #investorsĀ ā also known asĀ #flotationĀ or “going public”.
š HOW MANY IPOs ARE THERE: In 2021 there were 126 IPOs on theĀ London Stock ExchangeĀ raising Ā£17bn – withĀ #TechĀ &Ā #ConsumerĀ internet accounting for 30% of the volume and 50% of the market value
š° WHY COMPANIES OPT FOR AN IPO: Businesses decide to go public for different reasons, such as access to permanentĀ #capital, to maintain growth ambitions of the management, to raise their profile, improve currency forĀ #hiring,Ā #retaining, andĀ #acquiring.
š WHO CAN IPO: You donāt have to be a unicorn to IPO. The spectrum of market capitalisations and valuations varies significantly, both at the LSE Main Market andĀ #AIMĀ which is meant for growth companies. The focus is on the growth potential and the fundamentals of the business involved.
šļø HOW TO PREPARE: The process often starts a year in advance, sometimes longer. It is important to start early, make sure the appropriate reporting structures are in place, sort out the companyāsĀ #legalĀ affairs, get the documents in good shape, and put together a data room to make the due diligence process as smooth as possible.
š HOW TO EXECUTE: The first key step is to consider and appointĀ #advisersĀ and then test theĀ #investorĀ appetite for the business. If this is positive, next is the execution phase which can be undertaken in 4-5 months. This also involves the preparation of legal documents ā such asĀ #admissionĀ document or aĀ #prospectus, with supporting reports.
šŖ WHO’S ON THE DEAL TEAM: The IPO team will consist of lawyers, legal and financial advisers, banks ā sponsors and book-runners, accountants, financial PR and possibly others. For a full listing on the LSE, there is also the FCA who reviews and approves the documentation. In markets like AIM, the nominated advisers (NOMADs) will approve the documents then the process can be much quicker.
š„ļø HOW TECH CAN HELP: ScribeStar is used by issuers, law firms such asĀ Taylor Wessing UKĀ and others on the deal team to make this process easier and more efficient – [ping us for a demo š!)
šļø WHAT HAPPENS POST-LISTING: Once listed, there are also increased reporting obligations, but the key thing to remember is the importance of maintaining an ongoingĀ #dialogueĀ withĀ #shareholdersĀ ā effective communication and discussion with them will pay dividends in the long run.
