The latest from the London Stock Exchange is a must-read for companies looking at IPOs there. According to a new report it has published, ‘Leadership in a changing global economy: The future of London’s IPO market’, five key areas are worth a look:
1. Issuers need to ‘allow more opportunities for extended and widened engagement at pre-IPO stage including more independent IPO research’.
2. Research by the LSE indicates that London IPOs are not trading below their issue prices at a rate greater than in other financial centers around the world.
3. Companies looking to go public should use the smallest number of banks possible, ‘adding more only where there is a specific practical reason to do so’.
4. IPO fees should be more transparent, with issuers revealing the ‘band for banks’ fees’ in the prospectus and disclosing the criteria they use for determining the fees paid.
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