IPO Checklist
This IPO Checklist will help you prepare for an IPO on AIM – the world’s leading growth market, and part of London Stock Exchange.
1. Set yourself up for a smooth IPO process
- Be ready to communicate a strong track record and equity story.
- Define your company’s vision of success and set out a clear business plan.
- Ensure you have a proven management team in place as well as an experienced and diverse board.
- Check that your corporate governance is sound and your internal processes and procedures are optimised.
2. Planning for your IPO
- Determine the right timing for your business to come to market.
- Define your company’s objectives and preferred deal structure.
- Consider pre-IPO fundraising and complete an initial valuation.
- Review corporate structure – all contractual rights, assets and IP should be held under the AIM quoted company.
- Optimise internal controls and reporting procedures.
- Review financial results and performance – 3 years of audited financials will be required.
- Consider ownership structure – your proposed structure should be a balance between controlling interests and liquidity.
3. Get the right support network in place
There are a range of specialists in the market who can support you through the IPO process. Not all companies will appoint all of these advisers and some may use the same organisation for more than one role.
- You will need to select a nominated adviser who must be retained at all times. They will guide you through the flotation process, undertake diligence and draft the required admission document.
- A broker must also be retained at all times. They will assess the level of investor interest in your company’s shares and provide ongoing advice on share pricing and investment opportunities.
- Consider using a reporting accountant to help with your financial reporting procedures, working capital, financial position and tax and share incentive schemes.
- Engage a law firm to conduct due diligence on your business, including verifying ownership of assets. They will also negotiate the terms of the placing agreement.
- Consider using a PR firm to help craft your company’s story and create and maintain momentum. They can also help to produce the institutional roadshow presentation.
- An important role in secondary markets is the market maker who is responsible for the two-way price of your security.
- It is good practice to appoint a registrar to maintain the register of all shareholders. They can also help to provide other advisers with crucial information.
4. Documentation and due diligence
- Finalise the AIM admission document – this is the regulatory document used for the IPO.
- Provide the required historical, including pro forma, financial information and financial position and prospects (FFP).
- Complete the working capital report and long-form report.
- Complete legal due diligence and verification.
- Draft press releases and regulatory announcements of Intention to Float (ITF), Pricing, Admission to AIM & First Day of Dealings.
London Stock Exchange will work closely with you to ensure you are set-up correctly and effectively for IPO – and will continue to work with you throughout to maximize the ongoing benefits of being a public company on AIM.
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