Guide to Going Public

WHEN can you go public? Navigating the window of opportunity Have you thought about the right IPO timing? Timing the market is one of the key success factors for an IPO. When timed correctly, it will be a win-win situation for the company by providing an optimal valuation and IPO proceeds, in addition to post-IPO share investment returns for the IPO investors. Companies preparing to go public should consider: the strength and buoyancy of the capital markets, current economic indicators and the company's performance. Even in a challenging economy, companies that outperform the overall market prepare early for their transformational IPO journey, so that they are ready to launch quickly and more strategically when IPO windows are open. To capture opportunities, companies must communicate realistic timeline expectations to the entire IPO team - management, board members, external advisors and others. Outperforming companies have a team and working plans in place, to explore alternative exit strategies to an IPO, especially in uncertain markets, although IPOs are generally seen as providing better access to capital, visibility and credibility. When is the best time to list? The window of IPO opportunity can be difficult to predict, as external shocks and market disruptions come suddenly without any announcement or warning. Globalized and interlinked capital markets react to many unforeseen international events. For this and other reasons, there is a need for strategy and diligence prior to going public. Determining the best transaction time (and place) takes teamwork and commitment, and companies that evaluate this based on quantitative and qualitative considerations have a competitive advantage. Quantitative considerations will include company valuation, stock exchange and market volatility indices, while the qualitative factors can be the global or regional geopolitical landscape, market expectations on government policies and investors' sentiment. Other considerations you will need to examine include the specific markets you operate in, how comparable companies are doing and whether investors are receptive to new issuance in your sector. 10 | Guide to going public EY

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