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Ipo Presentation

The document provides an overview of conducting an initial public offering (IPO). It discusses goals of a successful IPO, key factors for success including the product, price, place, and promotion. It outlines IPO criteria, requirements, and preliminary preparations. The process includes due diligence, determining the offer and valuation, selecting a syndicate, marketing and pricing, and tasks of the lead manager. Costs associated with an IPO include banking fees, due diligence expenses, authority fees, marketing costs, and printing.

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243 views12 pages

Ipo Presentation

The document provides an overview of conducting an initial public offering (IPO). It discusses goals of a successful IPO, key factors for success including the product, price, place, and promotion. It outlines IPO criteria, requirements, and preliminary preparations. The process includes due diligence, determining the offer and valuation, selecting a syndicate, marketing and pricing, and tasks of the lead manager. Costs associated with an IPO include banking fees, due diligence expenses, authority fees, marketing costs, and printing.

Uploaded by

qaraj44
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 12

Present:

Overview of an Initial Public Offering

December 2000
GOAL: A SUCCESSFUL IPO

SUCCESS
• To raise additional funds in the future at attractive conditions
• To reward shareholders for their commitment
(majority shareholders+personnel+new investors)

INDICATOR
A succesful • Indicator: oversubscription + good after market
IPO
BENCHMARK
• Benchmark: share price rises on the first trading day and excess
return above market index

PRODUCT Company: attractive? swot-analysis


PRICE Valuation: equitable? different methodologies
Keys for
PLACE Distribution: appropriate? quality investors
Success
PROMOTION Communication: focused? key arguments
TIMING Moment : right? market conditions

2
IPO CRITERIA

• Track record
Attractive
• Potential for future growth
background • Supported by strong management capacity

on-going readiness to
communicate

Transparen • Group structure: capital, management


cy • Incoming flows: dividends, other remuneration

sound corporate governance + externalisation


of earnings

Requisite • Free float in relative terms: depending on selected Exchange


size • Free float in absolute terms: depending on selected Exchange

alternatives ? pre-IPO finance, private


placement
Legal
• Competent authority: EU-directive (if European listing)
requiremen • Market authority: depending on selected Exchange
ts
Regulations on-going disclosure requirements

3
PRELIMINARY PREPARATIONS
Delineate activities
Optimize group structure
Object of Introduce high-calibre reporting systems
IPO Adjust accounting system
Streamline incoming flows

• Amend articles of association


Tax/Legal • Arrive at amicable settlements
• Introduce a warrant plan for personnel
• Put company-shareholder relationship on objective footing

Organisatio • Propose (further) professionalisation of management


n • Appoint full management team
• Prompt expansion of board by addition of external directors

External
• General public press releases, open-house
communicatio • Target public conferences, fairs, specialised press
n

4
FROM DUE DILIGENCE TO LISTING
4 to 8 weeks

DUE DILIGENCE INFORMATION


• Financial management Audited financial statements
• Technical + Markets + Competitive
• Legal specialists position
Business plan
8 to12
weeks

DETERMINE OFFER CONTROL FREE FLOAT


VALUATION MARKET CAP

SET UP SYNDACATE

OUTPUT
DRAFT PROSPECTUS
COMPANY VALUATION

4 weeks

5
FROM DUE DILIGENCE TO LISTING

4 weeks APPROVAL PROCEDURE PREPARATION


review Road shows
draft Market final Legal documentation
application Authority Research reports
Printing + translation
approval
4 weeks

MARKETING & PRICING


Road shows + Bookbuilding
Offering price + Underwriting
Inscription period
Allocation + Payment
Listing

6
PREPARATION: FIRST STEPS
Financial auditor
• Audit financial statements
• Present financial statements in required format
• Latest figures

Technical Industry expert/market data


Due • Assess industry know-how
Diligence • Determine market, market position, competitors

Process
Legal corporate law firm
• Evaluated all existing legal matters
• Implements/adapt required legal matters
Astragal co-ordinates the due diligece process (timing, detailed
task description, follow-up…)

Business plan company management


Business • Overall and for the major participations
• Interaction with the due diligence process
Plan • Management position + external Board members
Astragal assists in drafting the business plan

7
VALUATION

• Business plan
Subject to • Industry expert report/market data
• Timing for the IPO
• Market conditions (interest rates, multiples, appetite for industry)

Methodolog 1) Discounted cash-Flow methods (DCF, EVA)


critical factors - LT-forecast (business plan)
y
- Discount rate (risk evaluation)
- EBIT margins

2) Industry multiples analysis (P/E, PEG)


critical factors - Peer identification
- Situation in peers in lifecycle

8
OFFER AND SELLING

• Control consideration: accepted dilution of present shareholders


Offer • Business plan: required capital for future projects
• Free float requirement: - relative: subject to market
requirements
- absolute: subject to market requirements

Target • Dedicated shipping investors 30 - 35%


• Large global sophisticated investors
investors
• Retail public in selected markets: 30 - 35%

Target • Public offer Countries to be selected


markets • Private placement selected markets
Benelux, Switzerland, Germany, France, UK, Scandinavia, U.S.

• Lead-manager : investment banks to be selected


Syndicate • Co-managers: investment banks providing added value
Astragal also selects and proposes co-managers

9
MARKETING & PRICING

Starts after approval preliminary prospectus and press notice


• Preliminary prospectus: final version with certain blank parts
Subscriptio (“Red Herring”)
n • Press notice: contains basic elements of the offer

Period
Duration at least 3 banking days upon avaiability of the
prospectus

Bookbuildin Establish a suggested price range by the start of the


g subscription period
Gauge market demand for the issue through road
Period shows
- institutional: “non-binding” indication
- retail public: fixed orders
Adjust and determine size/price/allocation of the offer
- green shoe

10
TASKS OF THE LEAD MANAGER

Co-ordinate due diligence process, determine offer

Compose IPO-team/bank syndicate negotiate


with the competent authorities

Company valuation and propose price range,


prepare prospectus

Co-ordinate and prepare marketing ,


determine
final modalities, underwriting and selling
allocation

Equity research, after market

11
IPO COSTS

Banking • Management fee


• Underwriting and selling fee
consortium

Due • Auditors, lawyers, tax specialists


• Technical experts
diligence

Authorities • Competent authority: one-off and annual fee


• Stock Exchange: one-off and annual fee
• Required publications in the press

• Printing of prospectus/shares
Marketing • Cost of road shows
• External PR agency (investor relations)

12

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