IPO
Checklist

IPO
Checklist

An IPO (or Initial Public Offering) Listing is the very first time your business is listed on the public markets for investors to buy shares in.

The journey to IPO Listing can be unfamiliar. This checklist can help you navigate some of the common pitfalls, as well as understanding whether the process is achievable for your business - before you start.

<p>An IPO (or Initial Public Offering) Listing is the very first time your business is listed on the public markets for investors to buy shares in.</p>
<p>The journey to IPO Listing can be unfamiliar. This checklist can help you navigate some of the common pitfalls, as well as understanding whether the process is achievable for your business - before you start.</p>

An IPO (or Initial Public Offering) Listing is the very first time your business is listed on the public markets for investors to buy shares in.

The journey to IPO Listing can be unfamiliar. This checklist can help you navigate some of the common pitfalls, as well as understanding whether the process is achievable for your business - before you start.

Please Note

This checklist is not part of an application process for IPO Listing. However, we hope it gives you an idea of what’s involved and what you need to do to prepare. Investors may ask for more or less information about your business and the finance you need than what is set out below. This will change depending on individuals involved

STAGE 1: Your suitability for IPO

Do you understand the pros and cons? Can you safely say that this is the right option for the stage your business is at?
There are a number of different public markets in the UK, including: The Main Market (home to FTSE 350), the High Growth Segment (for tech businesses) and AIM (for SMEs). AIM was created for scale-up businesses who are ready to take their business to the next level with a listing, but are not big enough for Main Market.
It’s never too early to get some advice and most Nomads or Sponsors back-weight their costs, so you don’t pay a penny until you have successfully listed.
Would you be comfortable releasing information from your annual accounts, half-yearly reports, directors’ share dealings, salary and tax?
Is your story compelling and comprehensive?

STAGE 2: Getting your house in order

Do you know your growth percentage goals and how much money you’ll need to finance them?
Is all Intellectual Property (IP) under ownership of the company?
Is your board properly structured? Do they have experience in this kind of transaction?
Do you have your results and performance data in order?
Are your personal wealth management plans also in order?
Do you have the documentation in place to prove it all?

STAGE 3: Preparing for an IPO

Do you know how long it will take? Do you have at least six months to spare before you want to start the process?
Have you spoken to multiple firms?
This is the person who will sell you as a public company, so you need to be comfortable with their abilities.
All of these players will be crucial throughout the process.
When is your ‘window of opportunity’? How important is a ‘window of opportunity’ in your sector?
Are you comfortable with it? What is the total amount of your business to be floated?

What's your next step?

What is a Nomad and why are they so important?

A Nominated Advisor (Nomad) helps you join AIM, including due diligence and preparing your admission document. Your Nomad will represent you at admission to AIM and you're expected to have a Nomad at all times once on market, so appointing the right one is a big decision.

What is a Sponsor and why are they so important?

A Sponsor plays a similar role to a Nomad but they are appointed when a business lists on the 'Premium Segment' of the Main Market or the High Growth Segment.

Not ready for IPO just yet?

ELITE is a programme, delivered by LSE Group, to help scaling businesses secure external investment. Every six months, 15-20 businesses undertake practical modules, educational support and training and access advisors to help them reach their next growth ambition.

Find out more about ELITE.