How to make an Initial Public Offering on the London Stock Exchange in 10 steps

7. Public phase

At this point it is advisable for your company’s lawyers to put in place approval procedures for information that is made public before you are listed. This will include making sure that, although you focus on marketing, that there is no heightened level of publicity.

When your company is ready to confirm plans of its IPO, it is normally by public announcement, otherwise known as the Announcement of Intention to Float (AITF).

And it is during this stage that marketing, often lead by the bookrunner, will begin taking place. Of course, you could also leave this to a PR company.

This is also when a draft prospectus (also called a Pathfinder prospectus) is made available to prospective investors.

?This document is an almost final version of the prospectus,? explains the London Stock Exchange. ?Apart from details of the precise size of the IPO and the subscription price of the new shares offered, it should include all other relevant details?.

The sponsor will start contacting a number of investors to raise interest in your company and get everything sorted for the road show (in more detail below).

More often than not, this is also when analysts ?market the story to investors using the research they have written.?

8. Road show

In an EY study it was was found that 82 per cent of investors worldwide cited the quality of the road show as a key measure to their buying decisions as well. Indeed, this step is crucial as it is perhaps the only time where investor?s will meet your senior staff face-to-face.

On a road show, underwriters will take your senior staff on a ‘tour’ to introduce you to key and potential investors for your business. This typically spans over a two week period. At each stop, your staff will be expected to tell them about your company and sing its merits.

This will also allow them to put skeptics in their place and win over a few more investors.

Although it may take some time to visit the all, it is vital that your company message stay the same throughout. This could mean coaching some of your staff in advance to make sure they’re prepared. Staff members should meet every now and then for rehearsals just in case.

For example, road shows often include something akin to an elevator pitch, a presentation most likely given by the CEO and/or the CFO.

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