Role of advisers on Main Market

Selecting good quality corporate advisers is one of the most important steps in the IPO process. Their specific expertise will guide you through each part of the process.

Spend time selecting the right team of advisers.  Many companies hold a ‘beauty parade’ of specialists to determine who has the appropriate experience and personality.

What advisers does a company need to appoint?

The regulatory framework means the company may require different advisers.

  • Main Market, Premium – a listing sponsor
  • Main Market, High Growth Segment – a key adviser
  • Broker – the corporate broker acts at the main interface with the stock market, assessing market conditions, the demand for your company's shares and actively marketing them to investors
  • Reporting accountant – reviews the company's financial records, which investors may use for business decisions
  • Lawyer – there are two sets of lawyers involved in the flotation process: one to advise the company and one to advise the sponsor. Lawyers focus on verification of the prospectus
  • Other advisers – you may consider appointing a financial public relations firm to assist in raising the company's profile and a registrar to manager your share register.
What is the role of a listing sponsor for Premium Segment IPOs?

The adviser will provide initial guidance on whether it is the right time to bring your company to market. The adviser will then undertake a range of duties including;

  •  Submitting the application to join the market
  •  Advising on board structure
  •  Advising on method of flotation
  •  Coordinating a flotation timetable
  •  Pricing strategy
  •  Marketing strategy

 

What is the role of a key adviser for High Growth Segment IPOs?
  • Key advisers are responsible for providing confirmation of the company's eligibility to join the High Growth Segment (HGS) of London Stock Exchange. There is no obligation to retain a key adviser on a continuing basis but HGS companies must obtain guidance of a key adviser in the case of specific transactions and corporate events.
Do I need an adviser?
  • Yes, to make your flotation a success, the company needs to persuade the investment community that its business is soundly managed. The advisers, especially the sponsor, play a key role in getting those messages across to the investment community.
How do I find a sponsor / key adviser?
  • You can find a full list of FCA-approved sponsors on their website.
  • A natural starting point is to consult your existing advisers, usually accountants and solicitors.  If they do not possess the experience to act for you, they could recommend appropriate advisers on the FCA's Sponsor list.
Guide to listing
Companies worldwide aspire to be listed on the Main Market.

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