Capital Markets – Preparing your business for IPO and a busy close to 2015
My summer holiday period started after having supported a client to complete their Main Market IPO in mid-July and upon my return, the traditional quiet August for Capital Markets activity means that many can be forgiven for feeling as though school’s out for summer. However this year the cogs have kept on whirring with many businesses getting ready to launch their IPO in the second half of 2015. With a strong pipeline of activity, we’re looking set to transition from a remarkable first half to an equally strong second.
If IPO is your desired option, getting your business ready is vitally important in light of increased investor scepticism. Having a clear strategy and investor story, alongside careful planning and preparation, are all key to ensuring a smooth process and, importantly, to ensuring that maximum value is obtained.
Results for the first half of 2015 already suggest that the IPO pipeline has managed to weather a number of potentially disastrous contributing factors, with the election and the predicted Grexit failing to weaken results. The IPOs completing in the first half of the year had generated an average return of just over 17 per cent, prompting a positive response from the professional community.
Looking forward into September, and writing this the day after August’s Black Monday, there remains some short term signs of uncertainty and volatility with a turbulent stock exchange in China and in the medium term the uncertainty around the question around the UK’s membership of the EU. However, the IPO pipeline does remain strong and this makes it even more important to prepare for your business so that you do not miss your desired window of opportunity if an IPO is your desired exit.
This could mean reviewing your strategy and investor story, preparing for due diligence, or educating yourself about the process and requirements. The key point is to make the most of your resources to ensure you are ready for an active second half of the year for Capital Markets activity, especially as it is AIM’s 20th anniversary year!