Key Learnings for a Successful IPO
Paul Lynch, former Chief Financial Officer of Applegreen plc, who played a key role in Applegreen’s initial public offering (IPO) process in 2015, presented to the participating companies on the Irish Stock Exchange’s #IPOready programme. Here he outlines some of his key learnings to ensure a successful IPO transaction.
9 key steps to ensuring a successful IPO
- Start early - focus on adapting culture, amending remuneration structure, develop a board structure possibly including non-execs
- Select your advisors carefully. They are key. Arrange formal pitches which will educate as well as firm up costs. Key factors to consider - expertise, experience and culture/chemistry
- Get specific resources on board to help with elements of the transaction so that day to day is not neglected
- Ensure due diligence is well managed and focused - don’t just leave to advisers to dictate
- Be clear on your message
- Be credible - credibility is very important and building same with investors begins with initial interactions
- Remember its much more than an IPO. Ensure focus remain on the life of the business as a listed company in the long term
- Don’t over promise
What an IPO delivers
IPO is a permanent capital solution for companies seeking to raise strategic finance. It provides companies with access to deep pools of capital; liquidity for shareholders; the ability to reward, incentivise and attract employees; and increased branding and profile for their business.