IPOs and spin-offs

In the case of divestments, unbundling or spin-off transactions where the company or asset in question is to be listed on a stock exchange, AWR Lloyd will follow a similar procedure for a divestment (see ‘Divestments and privatizations’) but also focusing on the listing prospectus, listing regulations, communication with the stock exchange and investor communications planning.

AWR Lloyd advises clients in relation to the pros and cons of different stock market listing venues – such as the London Stock Exchange main market, the London AIM market, the ASX, the Hong Kong Stock Exchange and the Singapore Stock Exchange.

AWR Lloyd advises clients preparing for IPOs on offer structure (e.g. primary versus secondary shares), pricing, equity capital market conditions, timing and positioning and process management. We can help in the process of beauty contests and appointment of investment banks, lawyers and engineering advisors (e.g. for JORC-based ‘Competent Persons Reports’). AWR Lloyd advises on fund manager, analyst and business press ‘targeting’ – and helps plan for and manage domestic and international roadshows (in conjunction with the appointed brokers).

Based on interviews with management and Market Signals Analysis we help prepare the company’s ‘growth story’ and ‘value proposition’. We provide prospectus support and reviews (in conjunction with lawyers and other advisors), investor and analyst presentation composition, website improvements, news releases and results presentation support. We also help clients planning IPOs to develop an IR team with training workshops, IR guidebooks and standard operating procedures.

For example

AWR Lloyd prepared an Indonesian coalmining company for a $2 billion IPO on the Indonesian Stock Exchange.

We advised first on the rationale and plan for the IPO. Then we focused on the investor communication strategy and materials. We then advised on financial structuring, IPO offer structure and pricing. We co-ordinated and organized the beauty contest to appoint the investment bank for the IPO and then worked closely in liaison with investment bankers, engineers and lawyers throughout the process.

The client’s share price rose significantly on the first day of trading and has tripled over the past four years.