IPO

In the recent years Initial Public Offering (IPO) has become a more popular tool for attracting equity capital to the company thanks to the following reasons:

• IPO allows attracting funds to the company without losing control of the company;
• Opportunity to diversify the investment portfolio for the investor by reaching out for business for the existing owners of the company;
• Making the procedure of attracting debt financing more appealing by increasing own equity capital;
• Free flow of shares (on the stock market) allows to reduce the cost of debt financing.

• Conducting pre-IPO diagnostics

  At this stage, we analyze how ready the company is for an IPO and offer appropriate recommendations and an action plan to the management.

  Analysis of financial results, production situation, cash flows analysis, organization structure; elimination of flaws that hinder becoming a public company (through reorganization, transition to generally recognized reporting standards, etc.).

• Signing a contract with an underwriter

  At this stage, the initial price of the shares and the amount of capital that the owners expect to attract is determined. Besides that, the underwriter issues new shares to the investors interested even before the start of their trading, thereby providing an inflow of capital to the issuer and profit potential to the investor with early rise of the securities.

• Preparing a transparent legal structure

  Companies with the consolidated ownership structure into the parent company, the shares of which will be sold as part of the IPO. We recommend to register a parent company in Switzerland.

• Comprehensive audit of financial-economic activity

  Comprehensive assessment of the current state and development of the company from the financiers, lawyers and auditors’ point of view.

  The goal is to obtain genuine and adequate data and to eliminate all kinds of unexpected cases.

• Transition to generally accepted reporting standards

  Reporting system transition to IFRS (International Financial Reporting Standards), depending on the chosen platform. When entering the stock exchange, it is necessary to provide statements for the last 3 years and the last interim reporting period (quarter, half-year).

  An audit report must be obtained from one of the “Big Four” companies, such as: Deloitte Touche Tohmatsu, PricewaterhouseCoopers, Ernst & Young, KPMG.

• Establishment of an effective corporate management system

  Organization of work of independent directors, audit and remuneration committees, IR service.

• Publication of an investment memorandum

  It contains expanded information about the upcoming issue, except for the up-to-date shares price, the volume of the offer and the estimated amount of funds raised.

• Road Show

  In order for potential investors to learn about the company, the underwriter organizes meetings (road shows) with brokers and potential institutional investors. These meetings are usually attended by the CEO and members of senior management of the issuing company.

  Meetings can be held in several countries and regions if the accommodation is international. This is an advertising campaign for an event that is being planned. It is intended for potential investors and is aimed at selling the issued securities to them before the start of trading.

  Based on the results of the Road Show and the market situation, the share price is being revised.

• Exchange and regulatory authorities’ registration and setting the date of the IPO.

  The right moment for placement may not appear immediately. The reason may be negative trends in the economy or in the field of work; parallel exit plans announced by other players; vacation period and other circumstances that determine market quotes and investors’ behavior.

• Approval of the prospectus

  This is the final edition of the memorandum. Among all other things, it includes data that were not in the previous editions of the document.

  After approval of the prospectus, the market sale of securities begins and their value balances based on supply and demand. The results of the issue are covered in the press.

The Equilibris team offers an individual strategy for a company media support throughout the entire IPO process. The main goal of such support strategy is to increase recognition and popularity of the company, as well as loyalty of the potential investors.

The media support strategy includes main methods of communication:

• Determination of primary marketing channels of interaction with the audience;;
• Conducting media research;
• Publishing press releases and reports in specialized and financial media resources;
• Creating and maintaining company account in social networks;
• Posting reports, interviews and press conferences about company's work and preparation for the IPO.

Equilibris strategy is not limited to single point publications, but creates an informational media pipeline to ensure maximum audience coverage.

• The minimal amount of the company's annual revenue - from €5 million;
• The minimal size of tangible assets (main fund, buildings and structures, means of production, goods and materials, and intangible assets (trade mark, registered brand) - from €20 million;
• It is necessary to provide reports for the last 3 years and the last interim reporting period (quarter, half-year);
• Schedule of the IPO transaction - Depending on company's readiness, the IPO procedure can take from 4 to 12 months.

• Implementation of the full cycle of underwriting from the initial analysis of the issuer to page-by-page support;
• Providing a full quality support;
• Willingness to work with firm commitment and best effort;
• Ensuring liquidity of securities;
• Availability of European investors.