IPO market on fire with the surge in IPO’s expected to continue into the Summer

Renewed vigour in the European IPO market has meant cash raised by companies going public in the first quarter 2014 (€11.4bn) has exceeded Q1 values for the previous four years combined.

This increase follows a busy final quarter of 2013 which saw over 100 companies successfully float and accounted for more than half the total proceeds raised for the whole year.

The pipeline in Europe for this quarter indicates that IPO proceeds could exceed €10bn and we expect at least 15 IPOs with over €250m proceeds are planned before the end of the summer.

Against this optimistic and active backdrop we layout our top 5 tips for companies starting the IPO journey.

Our top 5 tips:

  1. Walk the talk – Define your strategy and state how the money raised through IPO will be used – this is the basis of your investor story and will be what the market measures you against  pre and post IPO.
  2. Creating the right team –Select the right advisors for you and your team, this is absolutely crucial for your success.  Getting to the IPO day is a demanding and time consuming process; building the right team of both internal and external people can protect you and minimise the disruption – it will allow you to focus on running your business during the IPO process.
  3. Know the market – Understand who your competitors and peers are and how your equity story will be positioned in a bustling market place. Understand who your investor will be – institutional or retail investors or both? Determine which market or exchange will best meet your requirements.
  4. Be flexible – Some things are outside your control and even the best laid plans may have to change due to market conditions and other external factors.   Being prepared and having options is key – it gives you the comfort to go when you are and the markets are ready.
  5. Fit for the new world – Preparing and putting into practise how you will be as a public company will allow a seamless transition into public reporting and disclosure  - don’t under estimate how important it is to have the right systems and processes in place to cope with being a public company.

Read our full Q1 2014 update here.  What are your thoughts on going and being public – what is the most pressing issue at hand for you?

Vivienne Maclachlan | Director, Capital Markets Group
Profile | Email |  +44 (0) 20 780 41097

 

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