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If you are considering an Initial Public Offering (IPO), you need to follow a structured framework of preparations. (And if you’re unclear on what this IPO roadmap looks like, you can download a copy of our IPO Checklist.)

A key part of this preparation is deciding on how you will handle the communications requirements of the IPO process.

Businesses moving from agile start-up to public company, with all the requirements that entails, can have a rude awakening when they realise how much documentation they need to create to support their listing – and that’s before considering other aspects of communication, such as brand, reputation and profile.

What do IPO communications comprise?

In any IPO, the communications process starts long before your listing, and ranges from brand and profile-building through to regulatory-required documentation.

• Crafting your pre-IPO brand narrative

Your business needs to have a compelling story for investors. While much of this will be rooted in your financials and potential for growth, the way you articulate your brand is also key. What is your purpose? What’s your strategy and vision for the future; what would potential investors be buying into?

• Building your profile

Once you’re satisfied with your brand narrative, you need to share it. Creating thought leadership that showcases your views and capabilities; positioning your CEO and senior management as forward-looking leaders who can confidently steer your growing business.  Profile-building – including media relations work and relationship development with key stakeholders – is an essential aspect of pre-IPO communications.

• Engaging employees via internal communications

You need to bring your team on your IPO journey with you, and win their support for the next stage in the life of your business. Your internal communications are as important as your external activity.

• Admissions documents

In the UK, there are standard admission document requirements for any company wishing to IPO. If you want to list on the London Stock Exchange’s Main Market, you will need to prepare an IPO prospectus. If you choose to list on AIM, the Alternative Investment Market, a similar ‘admission document’ is required.

• Regulatory information

It’s not just the prospectus or admission document – which are comprehensive documents in themselves. As well as these IPO-specific documents, going public requires you to undertake various regulatory and legal obligations.

You will need to document board meetings, legal due diligence information and detailed financial reporting, among other information.

• Communications with potential investors

These investor communications form part of the regulatory requirements when undertaking an IPO. They also satisfy the expectations of potential investors. The prospectus details your IPO offer, pricing and growth plans.

In addition to this, investors will want to see information that evidences financial security. This might include:

• Financial statements
• Your most recent balance sheet
• Financial projections
• Tax returns
• Other reporting – ESG reports, for instance
• Details of money already raised, and where that money has been used
• Plans outlining how you intend to spend the money raised in the IPO

Pre-IPO, the information you share with potential investors is key to engaging your future shareholders. Documents to support potential investors’ due diligence; your IPO prospectus, main market IPO prospectus or AIM admission document – there is a wealth of documentation required for a public offering.

A common thread runs through all IPO communications

The communications needed pre-IPO are therefore many and varied. But one thing unites them all – the need for transparency and trustworthiness, whether that’s reflected in your brand positioning or made clear in your due diligence reporting.

This trustworthiness and reliability should extend to the advisers you appoint to help you during the IPO process. You will need to appoint a team of professional advisers – ranging from an investment bank, law firm and accountant – to, potentially, a PR or communications firm and a trusted design and delivery partner to work on your IPO prospectus and other required documents.

Understanding what IPO communications are needed – and working with suppliers you can trust to ensure right-first-time documents and seamless logistics – is essential.

Consider not just what communications are needed, but how you’ll share them. Increasingly, pre-IPO businesses are harnessing the delivery and data potential of online data platforms to communicate with potential investors.

Secure, accessible and providing rich data on potential investor engagement, data rooms provide real-time access to your materials and documentation. They can be used to host online investor roadshows and enable you to see which of your documents and messages are resonating most with investors.

But not all IPO documentation is digital – if you want to share hard copies of your prospectus, admission document, due diligence documentation or any other materials, you’ll want to ensure you’re partnered with a provider who can produce time-sensitive documents quickly and accurately – and can deliver them on time.

Comprehensive communications underpin your IPO journey

Sharing information is key in the pre- and post-IPO process. Whether we’re talking brand-building, early stage investor communications, providing evidence of your due diligence, or hosting investor roadshows, you need to engage your employees, potential investors and wider stakeholders. Once public, you’ll need to comply with the more stringent requirements of a listed company.

To ensure you don’t miss any steps in the journey to IPO – including around the necessary communications – you can download a copy of our free IPO Checklist. Or to find out more about how Perivan’s expertise in all pre- and post-IPO communications can support your listing, you can contact us.