Finance

Team members in an IPO

Posted in Blog, Finance

Team members in an IPO

In all IPO exercises, there are various parties and professional advisors who form the IPO project team to ensure all compliances are met and to drive the company towards a successful IPO eventually. This article will provide the general list of parties who are required to be in the team:- Management Team: This is a prerequisite that the management team is fully involved and committed in the whole IPO process from start till end. They will need to make certain decisions along the way, such as group restructuring, and implementing certain operational and financial shortfalls where identified....

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Pre-IPO Diagnostic

Posted in Blog, Finance

Pre-IPO Diagnostic

  In our earlier article “Preparing for a Successful IPO”, we mentioned that a Pre-IPO Diagnostic is a position assessment done on the company, focusing on its readiness to embark into the IPO exercise. This is also the most cost-effective way for a company to understand itself, allowing the management to weigh the cost and benefits of proceeding with the IPO exercise. The expected timeline for this work is 2 to 3 weeks for most businesses, mainly based on methodologies encompassing interviews recordings and checklists. In totality, the Pre-IPO Diagnostic covers these 3 sections:-...

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Preparing for a successful IPO

Posted in Blog, Finance

Preparing for a successful IPO

While many companies want to be public listed, majority of these companies did not prepare for the IPO exercise. In fact, many of the companies failed the Pre-IPO Diagnostic, which is an assessment done on the company as to their readiness towards an IPO exercise. From our experience, most companies failed the Pre-IPO Diagnostic because the owners and management of these companies have always been focussing on the following:- Tax planning to minimise tax exposure Owner operate, no properly defined operating systems Personal benefits, especially financial Many related party transactions...

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Initial Public Offering (“IPO”) – Advantages and Challenges

Posted in Blog, Finance

Initial Public Offering (“IPO”) – Advantages and Challenges

There are many reasons why the owners of the private companies are willing to go through the vigorous IPO exercise to get their company listed in the stock exchange. While monetary gains are mostly the expectations, let us explore the other advantages and disadvantages a public listed company may have:- Advantages of IPO Better market value: The valuation of a public listed company is generally higher than a private-owned company. This is because of the readily available company information for the general public to ascertain the value. Improved company image: Given the right marketing and...

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Initial Public Offering (“IPO”) – General Requirements

Posted in Blog, Finance

Initial Public Offering (“IPO”) – General Requirements

We all know that there are certain criteria for a private owned company to achieve the status of a public listed company. This status separates smaller companies from the big players. In this article, we will provide the general requirements that a private owned company to have before it should even consider going for the IPO exercise:- 1. Potential growth The business must be able to justify the growth pattern, not only in sales, but the market as well. The growth can be by way of horizontal or vertical integrations (expansion in supply chain), or market penetrations (territorial...

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Initial Public Offering (“IPO”) – An Introduction

Posted in Blog, Finance

Initial Public Offering (“IPO”) – An Introduction

What does IPO mean? It refers to the process of offering shares of a privately-owned company for sale to the general public. The first time these shares are offered is called IPO. There are various reasons as to why a company wants to go for IPO, where the more common ones as follows:- 1. Fund raising Many times when a private owned company wants to raise funds, the financial institutions will insist on collaterals and guarantees, and therefore, the amounts of funds to raise will be limited to the size of the collateral. In the case of IPO, the funds that can be raised will be determined by...

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