Enjoy the IPO ceremony and deliver on your promises as a public company.
Once your company goes public, the real work of running a public company begins. You have to comply with the new capital market regulations and meet the expectations that you set before the IPO.
Communication is critical for a management team that is in the public spotlight. Corporate performance and behavior are regularly covered in the media, on round-the-clock news channels and on social media.
With capital markets that are interlinked, listed companies have to meet global best practices. Active investors are increasingly influential, and can demand more information.
Mobilize investor relations (IR), road shows and investor marketing.
Your IR function needs to cultivate relationships with key analysts, to help them understand the business.
Having a strong IR function will help you:
- Sustain the market’s interest in your company
- Communicate with shareholders and the public
- Attract a pipeline of new investors and sell-side research coverage
- Manage regulatory and liability risks
Manage investor expectations.
The public markets are unforgiving. They insist on transparency and will not tolerate negative surprises. They want a long-term plan for growth and shareholder value.
The CEO and CFO must deliver on their pre-IPO promises. Furthermore, companies should meet or beat the expectations they set, especially with regard to the use of proceeds.
To thrive, you will have to demonstrate to investors that you are successfully executing the business plan, meeting financial targets consistently, attracting the right investors and maintaining regulatory compliance.
Growth is the key driver for market leaders. Investors prefer companies that plan to use the IPO proceeds to accelerate growth by:
- Expanding their operations
- Moving into new geographic markets
- Acquiring other companies
- Developing new products and services
- Enhancing marketing and branding
- Upgrading technology and infrastructure
Deliver high-quality external reporting and disclosures and good corporate governance.
You need to keep shareholders, regulators and the capital markets informed of corporate developments in a variety of regional-specific disclosures, i.e., annual and quarterly reports, ad-hoc disclosures, manager’s transactions, proxy statements and shareholders’ meetings.
Post-IPO risks and how to manage these risks
Are you ready for the EY IPO value journey?
The steps prior to, during and after an IPO are challenging and complex, but they are important for achieving success and lasting value. EY has a proven history of moving companies through and beyond the IPO process. We understand the markets, have insight into the processes, and work with and listen to our customers to guide them correctly.
We are ready to help you prepare for and navigate your IPO journey.