In the recent years there has been a high demand for IPOs on the Swedish market and the number of listings has been record high on both Nasdaq Stockholm and other marketplaces. The underlying positive stock market trend is affected by numerous macroeconomic factors and trends, on both national and global levels. However, the positive trend on the Swedish market seems to continue.
The road to the stock exchange - step by step
There can be several different reasons for an IPO. An IPO makes it easier for the company to raise new capital in the capital markets, allows own shares to be used as considerations in acquisitions, facilitates share-related incentive programmes, improves recruitment opportunities and makes the company's shares more liquid and cash convertible, as an exit opportunity for existing shareholders. An IPO is also a quality stamp for the company, since a stock exchange listing makes high demands of the information given to the market by the company, resulting in increased transparency. This can also help to make the company, and its products or services, better known.
Regardless of why a company becomes listed on the stock exchange, the listing process is relatively long and resource-intensive for the company. It is therefore important that the company begins to prepare its IPO in good time.
Below is an overview of the road to the stock exchange. If you would like to read a more comprehensive description, you will soon be able to download the memo 'The Road to the Stock Exchange' here.
- The company considers interest and possibilities for an IPO
- Appointment of advisors
- Initial meeting with the stock exchange
- Exchange auditor/certified adviser/mentor is appointed and their respective review process commences
- Commencement of scrutiny of the organisation, including for financial reporting, information disclosure and corporate governance, as well as initiate adjustments to fulfil the listing requirements
- Commencement of due diligence
- Commencement of work on prospectus/company presentation/information memorandum
- Initiation of affiliation to Euroclear if the company is not already a CSD company
- Commencement of work on analysis, pricing/valuation and marketing
- Due diligence performed
- Discussion with FI (the Swedish FSA) concerning approval/registration of the prospectus
- Translation of the prospectus into English (if relevant)
- Decision and application for listing
- The stock exchange's decision on the listing
- Prospectus to FI for approval/registration
- Printing of prospectus
- Roadshows for investors
- Application period
- Price decision
- First day of trading
- Congratulations! Your company is now listed
Lindahl's Capital Markets and Public M&A group regularly advises companies in connection with IPOs, as well as capital market transactions and other matters that arises during the listed company's life as a stock market company, such as handling AGMs, corporate law and corporate governance issues, information disclosure, insider and notification issues, incentive schemes, raising capital, public takeover bids and mergers, etc.
Lindahl's clients are often from knowledge-based, innovative, high-technology industries, and Lindahl is regularly engaged for share market transactions within life sciences, real estate, shipping and IT, telecom and media (TMT).