We understand that listing can be a complex process and therefore look to share our knowledge from the beginning. Understanding whether you, as a company, are ready to start the listing process is something we will help to assess.
Starting on the listing path without preparing can lead to avoidable extra costs. At PKF, we will assess the position of the financial and reporting systems in place to provide practical recommendations to the board of directors. Understanding the level of documentation in place (financial information, forecasts, and systems and controls memos) prior to listing can help you save significant time further down the line.
We can help you with all of the key decisions that you will need to make prior to the listing process, and ensure that you have robust processes in place to make the transition from a private to a public company as seamless as possible.
The team at PKF has many years of experience in assisting companies preparing for the rigours and extra reporting requirements that come with being a public company. We understand it can be a daunting task, and look to remove as much of this stress as possible.
Our extensive IPO experience means we know what works and how best to go about achieving a successful IPO. We have a strong network of trusted advisors including lawyers, brokers and PR advisers and we always willing to share our contacts who can ensure that you receive the best, and most suitable, representation.
Which exchange?
How much funding is required?
A new group structure?
Timeline
Which exchange?
There is a range of stock exchanges on which to list and we can help you understand which one is most suitable for you. The UK exchanges support all companies – whether looking for initial investment, funding for expansion plans or an exit strategy. Our experts will help you explore the options open to you.
A foreign exchange such as NASDAQ or the Toronto Stock Exchange should not be discounted, especially if you do business in North America. We have considerable experience listing and working with companies on these exchanges and the substantial PKF global network of offices means we will connect you with top level advisors anywhere in the world.
How much funding is required?
Understanding the reason behind listing usually drives the level of funding required. This might be to acquire another business, to purchase assets or simply to support working capital and promote organic growth. It should be noted that most stock exchanges have minimum raising amounts.
We will ensure you have the right tools and knowledge to hand before starting the process. We will help you understand the total cost of listing and what your realistic raise might be before you embark on the process.
A new group structure?
If your business is currently just a limited company, you will need to create a new Public Limited Company to act as the listing vehicle or convert the LTD business to a PLC. Both come with their hurdles, but we regularly deal with both scenarios and can help you through the process.
Setting up a new PLC will require a full share for share exchange prior to completing the listing. This is a simple process to enable all the original shareholders to exchange their ownership in the LTD business to the same holding in the new PLC. We work with experienced lawyers who would also assist in the process.
A PLC conversion avoids setting up a new company but requires a statement of solvency to be completed. To ensure this is possible, the LTD company must have positive retained earnings and at least £/€50,000 share capital, with a minimum of 25% full paid up.
Timeline
It is important to understand that a listing takes time. On average, to complete the entire process, including all the legal elements, can take anywhere between three and six months to complete.
The primary consideration to accelerate the process is preparation – ensuring that sound financial controls are in place and that you have three years of audited financial statements plus a financial forecast for at least two years. Having these means a smoother process enabling all involved to complete their respective work faster.
