A Primer on Initial Public Offering

A Primer on Initial Public Offering

Given our bullish capital markets, we believe it is the opportune time for many medium sized companies to look at Initial Public Offerings (IPO) as a means to raise capital for expansion, to reduce debt, or simply to provide liquidity to its original shareholders.

For most mid-sized firms, the pros and cons of an IPO seem to merely cancel each other out. In this regard, we believe that a seasoned independent advisor such as P&A may be able to provide you with more reliable assessment, after carefully considering the prevailing investor market, the aspirations of the original shareholders, the growth potentials of the firm, and its story for going public.

For most mid-sized firms, pre-IPO issues that have to be ironed out may concern corporate governance, internal control systems, compliance with best practices, tax compliance or basic corporate documentation and record keeping, to name a few. We work closely with the firms undertaking the required steps once an IPO has been decided.

It may initially seem that the cost is too high or too much documentation is needed prior to, and after, an IPO. However, let me assure you that the financial rewards are worth it. The ultimate testament to this is the fact that the businesses of most taipans, not to mention most industry heavyweights, are listed. Surely, there is commercial logic to their decisions to list.

We hope this Primer will serve as an initial step, satisfying your most basic questions regarding an IPO. Ultimately, you need a seasoned advisor to make an honest assessment of your situation and of the IPO window presently available.

We are greatly indebted to Atty. Francis Lim, President of the Philippine Stock Exchange, and Atty. Gabriel Dee of Picazo Buyco Tan Fider & Santos Law Offices, for the support and contributions they have made in completing this IPO Primer. We hope this publication will encourage you to think—BIG.

For a copy of the IPO Primer, please click here.