IPO Overview


How long does it take to complete an IPO on AIM?

The average is 3 – 4 months, however, this is largely dependent upon the level of due diligence required by the Nominated Adviser and what, if any, findings result. Companies from non-English speaking counties usually take longer to complete the due diligence requirements.

What does IPO UK Limited do for my company?

As the Producer for your company's IPO, IPO UK coordinates all aspects of the entire process. We first assess your company's readiness for money raising, making sure that your company has  a strong management team with integrity and capability, a viable business model capable of delivery, credible valuation – satisfying both investors/directors and a strong Board. We help you hire the right Nomad and the lead broker, lawyers, accountants as well as an expert PR firm. We connect you with institutional investors. We know who are the investors, what they look for and how to get ready to present what they are looking for.

How much does an AIM IPO cost compared to a NASDAQ IPO?

This depends upon the size and complexity of the IPO, however, the average AIM IPO costs 12-15% of gross fund raised whereas the average NASDAQ IPO costs 15-18% of gross funds raised.

How do the ongoing costs compare?

The average AIM listed company spends $1 million per year in ongoing professional fees and insurance compared to $2 million per year for the average NASDAQ listed company.

How and when do the various professional advisers charge for their services?

In relation to an IPO, the broker is typically paid in cash from of the gross proceeds, if the transaction is successful, with the occasional inclusion of share options and warrants.  The other professional advisers are paid in cash as they perform their services.  Your company should be prepared to and able to pay between $100 - 200k out of pocket during the process. Post-IPO services are paid in cash in the normal course of business.

 

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