In our latest report, “Making the list: Sights set on an IPO?", we consider: where are we in the IPO cycle, what it is that gives us optimism around the Small-Mid Cap IPO outlook, how to pull off a truly successful Small-Mid Cap IPO, and case studies of recent IPO success stories.
Looking to IPO?
Investec has a track record of advising on some of the most successful UK IPOs in recent years.
The public markets have long proved to be a good home to many companies looking to elevate themselves to the next stage of their development. We are very proud of our track record of delivering high quality, successful IPOs for our clients, as well as supporting them post listing.
Our leading IPO platform brings together our experience from an enviable track record of quality IPOs, deep sector knowledge, leading and highly respected research analysts, as well as a top-ranked sales team.
Making the list: Sights set on an IPO?
Top ranked and highly experienced
Highly-rated equity sales team and research analysts who will understand and sell your story to UK institutional investors.
2020 was Investec's most successful year ever in the Extel UK Small & Midcap (SMD) Survey
1st in 7 sectors
Am I a good IPO candidate?
Our straightforward, tried and tested approach to assessing possible IPO candidates
The four M's
Attractive underlying market dynamics which support the organic growth and present future growth opportunities
Differentiated, defensible and scalable proposition with leading position.
Strong track record of executing the plan and delivering growth in the sector.
The management being backed at the IPO would have delivered the historic growth and be able to stand behind the plan going forward.
Strong organic revenue growth, good revenue visibility, attractive margins and cash generation
Investec has worked with all of its prospective IPO candidates to get under the skin of the business and properly assess the equity case against these criteria.
We rely on our sector knowledge, and understanding of what public market investors look for, to optimise the positioning of the investment case.
The key to a successful IPO
Four simple steps to maximise the prospects of a successful IPO
An IPO is a highly intensive process for a CEO and CFO. The more that can be done upfront, the easier the process will be.
Preparation of a three year integrated business plan and model, adopting ‘PLC’ standard financial procedures and making any required additions to the second tier management and finance team will all help to ensure the process proceeds as smoothly as possible.
Early and regular engagement with investors…
A ‘fan base’ of investors needs to be curated via the process of Test Marketing and subsequent interaction.
This helps to ensure the equity story is properly understood, any areas of concern are addressed, and provides increased deal certainty for issuers. A fan base will help to create competitive tension amongst institutions to maximise value and to pick up momentum investors.
Telling the story right
Time needs to be spent with your adviser so that the equity story can be carefully constructed in order to maximise the impact with investors.
This includes both the presentation content, but also, just as importantly, how management present it.
We spend a significant amount of time with management teams preparing the story and rehearsing the presentation until it becomes second nature.
Getting a strong board assembled early
Good corporate governance is becoming increasingly important for investors, and key to this is an experienced and balanced Board.
A strong Board also acts as a good source of stewardship for management teams who are new to public company life.
Boards cannot be parachuted in at the last minute and it can take time to assemble the right people. We always advise that this is a work stream that is kicked off on ‘Day 1’.
IPOs: 'Plan for the marriage, not just the wedding'
29 October 2019
Floating a company is rarely straightforward. Learn what the main issues are from two CEOs and a fund manager who spoke at Investec's recent IPO conference. Their main messages? Prepare well in advance, choose your advisers carefully, and don't get greedy.
5 min read
Talk to the team today
Head of Advisory & Co-Head of Private Equity
"Investec has a track record of advising on some of the most successful UK IPOs in recent years. Speak to us today about advising your IPO."
Head of Advisory
Head of Investment Banking
Co-head of Corporate Broking
Director, Corporate Broking