IPO Financial Advisor Knowledge Guide

Transcription

1 IPO Financial Advisor Knowledge Guide 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

2 Table of Contents Section The IPO Process What a Financial Advisor Provides Financial Advisor Considerations Page

3 The IPO Process IPO decision IPO readiness Appoint advisors Preparation phase Submit IPO application CMA review and decision IPO book building Subscription period List on The Exchange Establish internal team for IPO process Conduct IPO readiness exercise IPO readiness assessment to identify the overarching and company level issues that impact the IPO implementation Design the necessary changes to support the IPO Implementation of all required Appointment of financial, legal, accounting and other advisors Understand corporate governance and reporting requirements Complete strategic initiatives changes An issuer considering listing is required to appoint a team of advisors (e.g. financial, legal, accounting, PR, etc.) that deal with the IPO regulatory bodies such as the CMA on behalf of the company. These advisors manage the process of listing and provide guidance to the company at different stages. Upcoming Completed Current Stage IPO Financial Advisor Knowledge Guide 3

4 What a financial advisor provides Pre-Planning Develop the equity story Develop a detailed IPO strategy Transaction Planning & Execution Phase I: Transaction Planning Appoint third party advisors to carry out Financial due diligence (FDD), Legal due diligence (LDD), market research & the PR/awareness campaign Create comprehensive project plan Appoint steering and operating committees Phase II: Project Management / Execution Review and evaluate all historical financial performance as well as future projections, key business drivers and risks Select the appropriate valuation methodology and build the financial model Recommend offering price range Take lead in developing offering materials/necessary documentation Advise the issuer on governance and regulatory framework Create the prospectus Create capital expenditures plan Gauge market interest in the offering Prepare IPO submission file to the CMA Amend in accordance with any feedback in an effort to obtain approval in an expedited manner 4 Book-building & Flotation Management Manage the bookbuilding process Determine the final share price as per the bookbuilding process Manage the flotation process Closure, settlement and commencement of trading

5 How to select a financial advisor for your IPO Experienced advisors play an important role in assisting a company present its IPO story in the most appropriate manner. The CMA provides licenses to professional advisors for providing IPO related services to applicants. The advisor provides guidance to fulfill regulatory requirements by acting as a representative of the company as well as managing the other advisors involved in the process. The issuer must initially hire an advisor with at least an Arranging license from the CMA. Following that, in order to manage the entire IPO process, there must also be an advisor(s) with the Underwriter and Advising licenses. For a detailed list that reflects all the licensed Authorized Persons list in the kingdom, please visit: IPO Financial Advisor Knowledge Guide 5

6 Sector Relevance FA Considerations Working Team Experience Cost 6

7 For more information about the IPO Please contact listing Department: IPO Financial Advisor Knowledge Guide 7

8 IPO Financial Advisor Knowledge Guide