Guide to Going Public
WHERE can you list your company?
The EY IPO destination assessment: finding the right market
Have you chosen the right stock exchange and
listing option?
Selecting the right capital market, stock exchange and listing
segment enables you to better determine the regulatory
requirements that your company will have to meet. In the run-up to
going public, your company's internal structures have to be checked
and prepared for the relevant requirements. These measures are
essential to maintain the profile of a listed company, and meet the
expectations of investors and regulators.
The EY Global IPO trends report shows that on a long-term
average, more than 90% of the issuers list on their domestic
stock exchanges, although they may market and sell shares to
overseas investors as part of their global share sale offering.
Where should you list? Capital market venue, stock
exchange and listing segment - what's the best option?
Companies can choose from more than a hundred stock exchanges and listing
options worldwide. Besides listing in your home market, there are three self-
contained regional venues for companies wishing to go public outside of your
home market, namely, in Americas, Asia-Pacific and EMEIA. Each venue is
distinguished by its time zones, culture, currencies and economies.
Questions to consider are: Does it make sense to go public and have your
primary listing in your company's country of incorporation and principal
operations? Or should you look further afield? Finding the answers to these
questions can pose complex challenges - particularly if there are strategic
benefits to listing your company away from its familiar national market. For
example, you can expect a listing abroad to attract consumers' attention to your
company's products and increase media exposure. This can facilitate access to
new markets and benefit your business operations. Or an overseas stock
market and investor pool will give the company a higher valuation.
The EY IPO destination assessment provides guidance in the
factors that require careful examination. It supports a structured
way to assess these factors, presented from different IPO
stakeholder perspectives. Arguments why to list abroad can be
categorized into four major areas:
Business and go-to-market strategies
Valuations and investor appetite
► Regulatory compliance environment
Initial and ongoing costs
9| Guide to going public
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