IPO Readiness. IPO Milestones Timeline. CMA review and decision. IPO decision. Subscription period. IPO readiness. Submit IPO application

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1 IPO Readiness IPO Milestones Timeline IPO decision IPO readiness Appoint advisors Preparation phase Submit IPO application CMA review and decision IPO book building Subscription period List on The Exchange

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3 Content Section What is IPO readiness The importance of the IPO readiness Key elements of the IPO readiness Page IPO readiness 3

4 What is IPO readiness IPO readiness is the first step in the IPO journey and is designed to guide companies through a successful transformation from private to public status. Getting the IPO readiness right means implementing changes throughout the business, organisation and the corporate culture. Public companies are subject to increased filling requirements, transparency, compliance, scrutiny by investors and analysts, and overall accountability for delivering on promises. Depending on the company, IPO readiness assessment usually takes between 12 to 24 months. 4

5 The importance of the IPO readiness IPO planning phase IPO execution phase IPO realisation phase Preparing for the IPO journey and assessing alternative options Develop an IPO plan and communicate with key stakeholders Perform an IPO readiness assessment IPO readiness Phases Create work streams to address IPO readiness gaps Building the right management and advisory teams Executing IPO work streams Managing investor relations and communication Delivering an effective road show Attracting the right investors Execute IPO Adapting to post listing environment Month 1 Month 2 Month 3 Ongoing Readiness Assessment IPO readiness assessment to identify any major issues that may impact the IPO process Design the Changes Design the necessary changes to support the IPO process and implement quick wins where possible, using the IPO readiness as a road map IPO readiness Implement Changes 5 Implementation of all required changes to support the listing process, such as: governance, functions, finance, human capital and technology

6 Key elements of the IPO readiness Assess options An effective IPO readiness assessment helps you decide which options best fit your business strategies that will assist in driving growth and adding value Being ready Being ready to time the market right and maximise value from the IPO process. In a ever changing and fluctuating economical environment, being ready is key to going public Drive value Initiatives that stem out of the IPO readiness assessment could be a long term value driver when fully implemented 6

7 Key elements of the IPO readiness 1 IPO strategy 2 Financials 3 Leadership and governance < A full diagnostic covering at least seven key areas of the business as highlighted in the adjacent diagram IPO readiness assessment modules 4 Functions < An effective IPO readiness delivers a focused gap analysis highlighting the current state of the company versus a listed company 7 Timeline and resources 6 Structures 5 Systems < It assists in developing an IPO strategy and it identifies critical work streams to address the gaps IPO readiness 7

8 Key elements of the IPO readiness 1. IPO strategy 2.Financials 3. Leadership and governance 4. Functions - IPO general plan - IPO goals - Offering options: raising capital vs. owners exit - External reporting - Forecasting - Prospectus - Management and board of directors - Remuneration - Corporate governance - Investor relations - Compliance officer - Internal audit - Human resources - IPO strategy is unclear and not well documented - Equity story is not inline with company strategy and not formally documented - Offering options not clearly defined - Not assessing alternative options - Financial reporting function is inadequate - Forecast and budgets are inaccurate and not reliable - Business plan is not aligned to the company strategy - Financial reporting system is manual or inadequate. - Financial reporting not performed in required timelines - Insufficient management commentary on performance - Complex related party transactions (corporate guarantees) - Board of directors not in line with corporate governance requirements - Policies and procedures are - inadequate or not approved - Sub committee functions are not well developed (Audit, Remuneration, Nomination and Risk committees) - Inadequate nomination and appraisal process for directors and management - Investor relation function does not exist - Inadequate compliance and monitoring function. - Inadequate internal audit function, including methodology and / or resources - Lack of performance appraisal process and training - Appropriate benchmarking not performed or monitored - Lack of a HR or manpower strategy 8

9 Key elements of the IPO readiness 5. Systems 6. Structures 7. Timeline and resources - IT - Enterprise risk management - Internal controls Security - Company does not have a suitable Enterprise Resource Planning (ERP) system - Company does not have a enterprise risk management system or framework - Company does not have a risk policy supported by a risk register - Weak Internal control environment - No security of information or IT hardware - No IT backup and disaster recovery policy or process IPO readiness - Issuing company structure - Company and legal structure - Unclear view on IPO entity structure - Complicated legal structure - Complex company structure not suitable for IPO 9 - IPO window - Alliterative IPO options - Internal resources - Unclear timeline for key phases of IPO journey - Company is not IPO ready to execute in the IPO window - Insufficient internal resources to manage IPO project and day to day tasks - Insufficient capital market experience - Key positions in the management team are vacant

10 For more information about the IPO Please contact Listing Department: 10

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