Eight steps to mastering the IPO journey

Against the current volatile backdrop, it is important to remember that conditions can change quickly. Companies should focus on the right timing for their company to go public and ensure the preparatory work is in place, so that they are ready to act when the market conditions are right. In the London Stock Exchange’s recent webinar, ‘Mastering the IPO journey’, Jonny Abbott, Director of Equity Capital Markets at Deutsche Numis, along with other industry experts, shared their insights on how to successfully navigate coming to market.

The panel, which also included speakers from Black & Callow, EQ, Latham & Watkins, PwC UK and SEC Newgate outlined two core stages to the IPO journey: the preparatory stage and the execution stage.

Jonny Abbott, Director of Equity Capital Markets at Deutsche Numis

Preparatory stage

The preparatory stage is focused on getting the company in order before going public, where it will be subject to increased investor and regulatory scrutiny. The panel identified four key considerations:

1. Timing: It's important to find a window that works for your company rather than the market, which can change quickly - and be ready to act within that window when conditions are favourable.
2. Equity story: Crystallising the equity story and investment case is crucial, as it feeds into many other workstreams and needs to be in place before building a ‘fan base’ of investors.
3. Legal health checkup: Ensure the company is in order from a legal standpoint by addressing any regulatory or compliance issues early in the process.
4. Corporate governance: Look at the company’s governance structure to identify any business risks involved in the transition to a public entity.

Execution stage

Once the preparatory stage is complete, the execution stage begins. This stage involves targeting the right investors to ensure there will be sufficient support for the IPO at the point of listing. The panel highlighted these four considerations:

1. Building investor interest: Conduct an 'early look' roadshow to test the equity story with a short presentation to a smaller cohort of core investors before moving on to a deep-dive presentation to further engage and solidify investor interest.
2. Corporate profile: Sharing positive newsflow can enhance the brand and profile of the business ahead of the IPO.
3. Consistency: Ensuring consistency of messaging from early meetings to analyst presentations, through to the publication of the prospectus is important for the investor education process.
4. Legal documentation: Prepare or refresh governance documents, including the all-important prospectus.

While coming to market is a complex process, the panel were in agreement that thorough preparation and targeted execution will help with ensuring a smooth and successful listing. And, while it can be a lengthy journey, there is a wide range of advisers to tap into with the necessary experience and expertise to help guide a company through the transition from a private to a public entity.

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