Types of IPO Advisors
Companies interested in going public will have to pay careful attention to their choice of partners. An in-depth understanding of each advisor’s role is essential to the selection process. Choose them well.
You will find an outline of each type of advisor below.
During an IPO, Investment banks play a number of roles at different stages in the process. These include advising, managing the process and underwriting (where the bank acts as an intermediary between you and investors). The bank implements the transaction as your trusted partner.
Companies appoint several Investment banks, named as 'Banking syndicates'. Usually, one bank is named “Global Coordinator/Lead Manager”, which means it is responsible for coordinating and implementing the IPO and maintaining a relationship with the market regulator. The other banks act as Joint- Bookrunners/Co-leads; their role and scope depend on the syndicate (structuring, placement, research).
Investment banks also act as listing agents. Listing agents are all market members accredited to advise companies on listing on Euronext markets. These investment banks are the official intermediary between the stock exchange and the company for admissions on the Euronext regulated market.
Your legal advisor will work alongside you to ensure that your company is ready for listing. They will advise you on your regulatory duties before and after listing.
They perform due diligence on your company. This is vital to minimise potential liability for your company and its board of directors. Any issues that arise from the due diligence can then be rectified before listing.
The legal advisor will also draft and verify information for your Information Document or Prospectus.
The reporting accountant is central to your team and is often your auditor. They will review and report on your financial records and corporate structure. They will carry out financial due diligences and help you prepare for being a listed company.
They will summarise your financial information for inclusion in the Information Document / Prospectus.
Your Communications / PR advisor will help to promote your business and its potential in the wider market. Creating a strong media presence is an important aspect of the IPO. They will assist in developing key messages and communication materials (press release, website, social media) for all stakeholders as part of your IPO process.
They will also provide media training and support for your key executives.
Listing sponsors are banks or independent advisors that play a support role in the listing of SMEs on junior markets. They are accredited by Euronext, and their special status and presence are designed to enhance investor confidence.
Prior to any listing, a certain amount of legal “housekeeping” and preparation is required to ensure that shares are suitable for listing, that the company complies with relevant legal requirements, and that current and future investor needs are met.
The listing sponsor is a key player for the company and investors, and acts as the primary contact for Euronext.
The appointment of a listing sponsor by the issuer is mandatory for an admission to listing on Euronext Growth, Euronext Access and Euronext Access+. You must retain a listing sponsor at all times if you are listed on Euronext Access+ and Euronext Growth.
Depending on the specific features and nature of your IPO, additional advisors may be involved. These include intellectual property advisors, independent real estate assessors, technical advisors on due diligence, registrars, etc.
Our world is constantly changing, and at Euronext, we recognise the importance of consistently sharing our routines with our clients and partners.
Day to day we receive many questions, often of very similar nature. We have therefore created a summary of answers to these frequently asked questions in order to better service you, our issuer and intermediary community.