The IPO Process
The IPO process is a complex one, requiring careful planning and execution. It involves a number of key steps, including:
- Financial and Governance Readiness Assessment
Companies must assess their financial and governance readiness and evaluate their business plan to ensure they meet the requirements set out by the FCA.
- Team Building
Companies must assemble a team of experts, including investment bankers, solicitors, auditors, and other financial professionals, to guide them through the process.
- Registration with the FCA
Once a company decides to go public, it must register with the FCA and comply with strict regulatory requirements.
- IPO Shares and Pricing
Companies must determine how many IPO shares they will offer to the public and at what price.
Benefits of Going Public
Going public through an IPO can provide a range of benefits, including:
- Exit Strategy
Going public can provide an exit strategy for early investors and founders who want to monetise their investments.
- Access to Capital
Going public can provide access to new capital and resources to help fund growth and expansion plans.
- Credibility and Transparency
Being a public company can provide a sense of credibility and transparency that can help attract new investors, customers, and employees.
- Equity Incentives
Going public can help a company attract top talent by offering stock options and other equity incentives that can be valuable to employees.
Challenges of Going Public
Going public also comes with its share of challenges, including:
- Time and Cost
The IPO process can be time-consuming and costly, requiring a significant investment of resources and a team of experts to guide the company through the process.
- Regulatory Compliance
Companies must meet strict regulatory requirements, including ongoing financial reporting, governance, and disclosure requirements, which can be complex and demanding.
- Public Scrutiny
Once a company goes public, it is subject to greater scrutiny and public pressure from investors, analysts, and the media.
Our Top Tips for a Successful IPO
To prepare for a successful IPO, companies should take the following steps:
- Start Early
Companies should start preparing for an IPO as early as possible, ideally a year or more in advance.
- Assemble a Team of Experts
Companies should carefully select a team of experts. This will typically include a financial adviser, lawyers and registrars, and will involve working closely with them throughout the IPO process.
- Assess Financial and Governance Readiness
Companies should assess their financial and governance readiness and identify any potential issues that need to be addressed before going public.
- Develop a Strong Business Plan
Companies should have a clear and compelling business plan that outlines their growth strategy and market opportunity.
- Build a Strong Management Team
Having a strong management team is critical to a company's success. Companies should ensure that they have a strong and experienced team in place to lead the company through the IPO process and beyond.
The IPO Review
Each quarter Equiniti reviews both UK and international IPO activity in The IPO Review. To join the conversation and receive updates each quarter, register below.