Delivering on the committment made throughout the IPO/Bond Offering
The effort that companies put into getting the business ready for public life is invaluable, but the journey to long-term success requires rigorous planning matched by a commitment to operational excellence. During the IPO/bond offering process, investors are provided with a compelling story about where the company is going and its fast track to success. After the IPO/bond offering, it is important to keep investors updated and interested.
Are you using the proceeds of your IPO/bond offering to fund growth?
A sustainable growth is the key driver for measuring the Company’s performance. Investors prefer companies that plan to use the IPO/bond offering proceeds to accelerate growth, whether through expanding their operations, moving into new geographic markets, acquiring other companies, developing new products and services, enhancing marketing and branding or upgrading technology and infrastructure. With the referred growth, the company will be able to achieve the ultimate goal of rewarding its investors through capital gains (increase in the securities’ market price) and/or dividends.
The Company should define, at the early stages of the listing process, the goals for the next three to five years, its strategy and financing needs, so Investors have legitimate expectations about what should be the achievements that the Company should be able to accomplish.
Companies should meet or beat the expectations they have set, especially with regard to the use of the proceeds from the IPO/bond offering. The Company needs to demonstrate to investors that the business plan is being successfully executed while ensuring regulatory compliance.