OUR SPECIALIST ADVICE ON BECOMING A PUBLIC COMPANY
Does your company wish to become Public?.
Our commercial solicitors in Heathrow can help you to make this happen.
Here we explain in detail the processes and how the team can help your company prepare for this decision.
We advise you on the advantages and disadvantages of the transition of your company using our IPO solicitors in Heathrow.
So what are some of the procedures we can guide you on;
INITIAL PUBLIC OFFERINGS
This is a process by which a company becomes a listed company.
The terms of IPO and flotation are used interchangeably and establish, any company seeking to become such a listed company.
It must undergo an admission procedure to have shares.
1. Admitted to listing on an official list for which it must register with the FCA and comply with prospective rules and listing rules and;
2. Admitted to trading on the main market for which it must liaise with the stock exchange and comply with admission and disclosure standards.
At the beginning of the IPO process the sponsors will draw up a draft timetable for the IPO. Several factors drive the timetable.
The FCA and Stock Exchange
The FCA and Stock exchange have their own rules about timing which cannot be exchanged.
IPO Process explained
The company may have particular requirements as to timing which may be inflexible such as a desire to dovetail the IPO or subject to change (for example if companies IPO is dependent on the occurrence of a certain event which has a fixed deadline.
We will be asked to comment on the draft timetable and agree it. The sponsor will have the task of ensuring that agreed timetable does not slip.
We will ensure that;
a) there are no omissions in the timetable and
b) the timetable is viable
IPO PROCESS STRUCTURE
We will also be involved in the IPO process in commenting on
the list of documents drawn up by the sponsor. The list sets out all the documents
The process is as follows
1.6-12 months before Impact day (Pre-IPO preparation)
2.3-6 months before Impact day (the IPO process begins)
3.1.5-3 months before Impact (Company appoints advisers and meets sponsors)
4. 6-12 weeks (The process gathers momentum)
5. 2-6 weeks (The process becomes intense)
APPOINTING A TEAM OF ADVISORS
Heathrow solicitors can guide you on the necessary steps. The year before the IPO the company must consider carefully who to appoint as its advisers.
Any company seeking to float requires professional advice, in relation to a wide range of issues.
Our Heathrow Solicitors can help provide you with the best practical advice on flotation.
THE COMPANY AND DIRECTORS
Our Heathrow solicitors will help you build a prospectus and this will contain a substantial amount of information about the company. Once this is drafted we will seek approval from the Directors.
Draft all documents relating to the IPO.
This includes not only the prospectus but also ancillary documents including prepatory documents required to restructure the company.
These include articles of association, drafting new service agreements, contracts for directors and re-registering company as public.
1. The company must have in place a written and legally binding agreement which our Heathrow Solicitors can draft for you between controlling shareholder and the company; and
2. The company articles of association must allow the election and re-election of independent directors to be conducted in accordance with set procedures.
ARE YOU READY TO FLOAT?
Having looked at some of this criteria there will be two main considerations for you before you decide to go ahead. They are ;
1. Will the company meet the regulatory requirements for an IPO laid down by the FCA in relation to listing and the stock exchange.
2. Will investors perceive the company to be an attractive investment opportunity.
We hope you enjoyed this article.
We can also offer advice on the various methods of public offering and the advantages and disadvantages of each for public companies.
Our public company and IPO solicitors will help you through the whole process.
Call us now on 0208 575 0061