MTI Corporate Finance unveils the ‘IPO Model’

MTI Corporate Finance’s IPO Model will be the main focus of its’ upcoming IPO Forum.

The Model provides a very clear and concise framework which is ideally suited for SME’s and Private companies who are eyeing the idea of Public Listing.

The MTI IPO Forum will be held on Thursday 4th November 2010 at the Taj Samudra Hotel.

The process is categorised into three main phases – namely the Pre-IPO Stage, the Launch-IPO Stage, and the Post-IPO Stage.

The Pre IPO Phase

At the Pre-IPO Stage, the company must identify the need to go public, and set forth to prepare the company for the listing process.

nRationale - The strategy formulation process starts with identifying actual need for an IPO. There can be many key drivers for a listing decision. These may be attributed to a number of objectives such as expansion & growth via new product line ups, market entry strategies and capital structuring requirements etc.

nEnabling – Once the decision is made, the company needs to develop the strategic plan, mapping out a clear direction for achieving the objectives identified in the funding decision. In readiness for an IPO, it should also ensure all compliance requirements are addressed. This includes Board Composition and structure, Financial Accounting & Reporting Systems and Risk Management Systems, along with the right executive teams.

The Launch IPO Phase

The launch phase involves meeting the listing requirements of the stock exchange and promoting the company’s shares among potential investors. These steps need to be planned simultaneously.

nListing - Once the initial planning is completed, the company will submit its application to the CSE, along with the important decision with regard to timing of the Listing. The Valuation of the Company is also a key aspect at this stage.

nPromoting –Marcom activities are crucial to attract the right investors and hence the success of an IPO. This would involve communicating the company’s value proposition developed based on the Company’s earning potential, to the potential investors of a company. The development of a compelling value proposition, interacting with stock brokers, institutional and retail investors, are some of the critical aspects.

The Post-IPO Phase

After the initial listing process is completed, the company is faced with the most important task of living up to the expectations of its stakeholders. Among these stakeholders; the core groups to be satisfied are the Investors and the Regulators. At this phase, the credibility of the strategic plan, financial projections & systems and corporate governance systems will be tested.

nComplying – The Company needs to ensure that it complies with the regulations of the SEC and ongoing listing requirements of CSE.

nPerforming – The effort put into the entire process must materialise into Performance, in terms of qualitative and quantitative growth in the company. The performance will manifest itself in the maximisation of the wealth of its shareholders. There is no substitute for performing.

MTI Corporate Finance is a recently launched subsidiary of Global Management Consultancy MTI Consulting. MTI Corporate Finance offers a full range of Corporate Finance Solution in the major domains of Corporate Funding & IPOs, Incorporations & Acquisitions, Asset Management, and Governance & Compliances.

MTI Corporate Finance assists its clients by preparing them for an IPO through Strategic Advisory & Risk Management Audits, Valuation & Prospectus Development and the CSE Application & Listing Process. The Unit is backed by a team of Corporate Finance Specialists with extensive experience in IPO Facilitation and related Finance Solutions.