EY Strategic Growth Forum™ session highlight

Panel: IPO under more globalized environment

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EY - IPO under more globalized environment

Mainland China is bursting with companies that want to raise capital. Many are choosing to list their shares in Hong Kong or overseas, and foreign investors have an appetite to match. Our panel shared insights to make your cross-border listing a success.

Before you do your roadshow, do a roadshow. Meet potential investors far in advance to explain your business model and gather their feedback. By the time you go public, investors will already know your business well – and you’ll know more about how they invest.

Get your information in order. Many foreign exchanges have tough disclosure requirements. Take time to focus on transparency and governance. Your IPO will be smoother and your business more competitive as a result.

Get the valuation right. Sometimes underwriters over-promise. But aim too low and your IPO will resemble a fire sale. Be honest and objective about your company’s worth, and think long-term.

Cash may be your objective, but a cross-border IPO brings other benefits. As you choose where to list, think about the impact on your brand and future business partnerships.  Consider the flexibility it offers in raising further capital through debt and equity issuances, and in offering stock options to your executives.

These insights are from a panel moderated by Michael Bi, Private Equity & Venture Capital Assurance Leader, Greater China, EY. The panelists were Li Jingzhen, Director, Offering and Listing Department, Shanghai Stock Exchange; Franky Chung, Vice President, Mainland Development / Special Representative, Southern China, Hong Kong Exchanges and Clearing Limited; Ma Xiping, Executive Director, Deputy General Manager, Secretary of the Board, Qinhuangdao Port Co., Ltd.; Sam Sun, Chief Financial Officer, Qunar.com; and Tim Cen, Managing Director, UBS (China).

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