The key requirement for any company seeking to attract “outside” investors, whether on an IPO or through private equity investment, is to be “investor ready”. This means the company will have appropriate controls, policies and procedures to enable the directors to closely monitor the company’s trading performance against market expectations and to be able to respond appropriately to any external “shocks” that might affect the actual or perceived trading performance. Being “investor ready” also requires a board with the appropriate blend of skills and experience to be able to challenge management effectively and so improve the decision making process. In this way, outside investors can have confidence that, although they do not have the same intimate connection with the company as the management, the right courses of action are being properly considered.
Very often becoming “investor ready” is used as a stepping stone on the company’s development journey towards an IPO which can then be used to facilitate an exit for earlier stage investors.
An IPO is a very effective option for raising capital for a business and in turn provides a liquidity event for early investors. Through this process, a privately owned enterprise is converted into a company whose shares are traded publically to raise capital. There can be significant benefits for the company, its shareholders and employees in an IPO which include achieving a market value for the shares, facilitating acquisitions through the issue of equity, widening share ownership to include quality, institutional investors, increasing employee incentivisation with share options, tax incentives and raising the company’s market profile.
If you decide to commit to an IPO to raise capital, we will work closely with you and project manage all components of the process. Pre-IPO work is done to ensure the company is “investor ready “ for public company investors who do not have the same degree of connection as the owners of a private company, with appropriate checks and balances to ensure good corporate governance.
If you do decide that you wish your company to “go public”, we will always consider all options when advising on the best route to market.
AIM is an attractive option to consider and we can also arrange full listings.
There are other factors that a company should take into account when deciding whether or not to seek admission to AIM:
All AIM listed companies are required to use the services of a NOMAD. WHIreland is ranked 3rd largest NOMAD by number of AIM clients. We provide strategic as well as regulatory advice to our clients to ensure compliance with their continuing obligations under the AIM rules.
WHIreland also acts as financial adviser to companies on NEX Exchange (previously named ISDX) and the standard list of the London Stock Exchange.
To find out more call us on +44 (0)20 7220 1666