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The better the question. The better the answer. The better the world works. У вас есть вопрос? У нас есть ответ. Решая сложные задачи бизнеса, мы улучшаем мир. У вас є запитання? У нас є відповідь. Вирішуючи складні завдання бізнесу, ми змінюємо світ на краще. Meilleure la question, meilleure la réponse. Pour un monde meilleur. 問題越好。答案越好。商業世界越美好。 问题越好。答案越好。商业世界越美好。

Phase 3 - IPO transaction

Guide to going public

Prepare financial information for the first draft of the offering prospectus.

Companies looking to carry out an IPO on most main boards of stock exchanges must present consolidated financial statements in accordance with accounting standards such as International Financial Reporting Standards (IFRS) or US GAAP. Many junior markets allow national GAAP as the reporting standard.

EY infographic, IPO strategic considerations IPO planning, phase three

Manage the filing process, finalize the prospectus and seek approvals.

Before closing on the offering, underwriters and other parties will require a comfort letter or another form of financial due diligence. This is a critical step because it provides a level of comfort regarding the financial information in the prospectus.

Take the show on the road to attract the right investors at the right time.

  • Your pitch needs to convince investors to buy your IPO shares. You will need an organized, 25-minute presentation and comprehensive selling points.
  • When drafting the presentation, you must keep two audiences in mind: the sales desk of your broker and the institutional investors.
  • You will also need three to five key messages for an elevator pitch when you have only a few minutes to convey your investment story.

Build the IPO order book, determine the issue price and allocate orders to investors.

To generate initial interest in the IPO, the preliminary offer price generally includes a discount on the fair value. This discount needs to be agreed upon by the underwriter and the issuer.

The preliminary price or book-building price range is then “tested” with investors during the IPO road show. The higher the perceived risk of an investment, the higher the return required and, therefore, the lower the share price an investor is usually willing to pay. This is why a good road show is crucial to the success of an IPO.

Ready for Phase 4?

Download the 54-page Guide to going public or call your nearest EY IPO professional to discuss your IPO plans.

Connect with EY Global IPO leaders on: Twitter LinkedIn #IPOreport

See our latest IPO insights here.