Before a company can formally start the IPO process, it needs to ensure it meets the required criteria for listing.
- It must comply with the regulatory and legal standards of a public limited company. Also having a minimum share capital of a percentage should be paid up front.
- Annual accounts and reports must comply with the rules of the chosen stock exchange.
- It must comply with the rules and regulations of the market it is going to join, as every market differs.
A well thought out strategic planning IPO Kick Off Meeting will lead to successfully being listed on the companies chosen stock exchange.
This could include markets such as the London or New York Stock Exchange.
Kick Off Meeting Considerations
In this starting phase a number of items need to be considered;
- Board Approval, after the management formally accepts the proposal, the IPO process can start.
- Forming an IPO Team, the management will need to find candidates for the roles required to fulfil an IPO including internal management, lawyers, counsel, underwriter, accounting firm, and nomad (If listing on LSE).
- Timelines, once the IPO Team has been assembled, timelines and guidelines will need to be established for the whole of the project, including any deadlines and potential risks that could arise.
- Selection of an Investment Bank
The IPO team will hold responsibility in listing the company on the stock exchange. Handling all the key processes such as drafting the prospectus and underwriting the IPO. Key Management will look to the team for advice on the pricing of shares, as they will have performed extensive research into the market and future forecasts. Doing this whilst adhering to all regulations and legal rules.
Additional meetings will be used to deal with any arising problems, keeping up to date with the existing schedule and reviewing amendments to the draft prospectus.