Going public can open endless opportunities for your clients and their investors, and such a highly visible event needs to go smoothly. When your client is considering an IPO, the more they know upfront, the better. Knowing where to begin and what to expect before, during and after the transaction will help them IPO intelligently. That’s where the ABCs of the IPO comes in — view this quick reference to help make sure all your client's bases are covered.



ANTICIPATING the Road Ahead: Pre-IPO Considerations

Establishing a dedicated team that is ready to support your client’s IPO effort is the first step to a successful IPO. Your client needs partners that will provide value, alleviate some of their daily burdens and help position them for success - both during the IPO process and moving forward as a public company. Your client also needs to consider some of the more logistical steps that should take place at the start, such as:

Communications

It’s important to have a solid communication plan that will keep your client’s investors informed throughout the process, and make engagement seamless for new investors.

Governance

Your client should review their company charter and bylaws to know what they can and can’t do as it relates to issuing electronic shares vs. paper certificates or shareholder communications.

Data

Chances are your client’s investor records are not currently at the level they need to be to efficiently execute the IPO. Taking the time now to analyze and make any necessary amendments to these records can save a lot of time and energy down the road.

DTC Eligibility

The Depository Trust Company (DTC) is the repository through which stocks of your client’s public company will be transferred between brokers and agents. Your client will need to ensure their shares are DTC eligible so that they are qualified for deposit into the DTC. They will need a sponsor for this effort (hint: their transfer agent can help here).

Escheatment

You will need to understand your obligations and get comfortable with the state by state laws and regulations.


BEGINNING the IPO: Execution


Your client’s IPO is in full swing and they are working with their selected transfer agent. There’s a long list of required documents that will need to be filed, but with the help of a trusted partner, you can rest assured that your client’s IPO execution will be as easy as 1, 2, 3.

Step 1: Appointment Documents

Your client will be required to execute several documents related to the appointment of a transfer agent and for servicing their shareholders.

Step 2: Closing Documents

Your client will need to execute and provide their transfer agent with the appropriate closing documents to issue shares related to the IPO.

Step 3: Transfer of Shareholder Records

Your client will need to provide complete shareholder records to their transfer agent for accounts to be created and established on the recordkeeping system.


CLOSING the IPO with Confidence: Post-IPO Considerations.

Your client is officially trading on a major exchange, but they’re not entirely done yet. With focus now shifting to your client’s future as a public company, they should be thinking about solutions that will best position their future for success. And the right transfer agent as their partner can help. Things to consider include:

Investor Relations

Your client will want to offer the best possible shareholder experience — since the selected transfer agent will be considered an extension of their investor relations team, it’s important the transfer agent provides a good experience with account access and service.

Annual Meetings

A flexible portfolio of annual meeting services will allow your client to select the meeting components that are most important to their company. From meeting management to execution, from virtual meetings to in-person events, they will want a partner that will stay on top of everything and help them execute an impactful meeting.

Equity Plans

If your client’s transfer agent also administers equity plans, it may make sense to switch to them if using a different employee equity plan provider. This will provide cost efficiencies and save on fees to move shares between different providers.

Entity Compliance

As your client grows, they will have more entities to manage, which will bring a host of new compliance matters to stay on top of. Engaging a platform to help streamline this work, and eliminating some of the day-to-day work entailed with entity compliance management can save them time and help them avoid risk.

Supplier Management

Working with a transfer agent that can offer a wide range of services that meet your client’s equity, compliance and governance needs can often lower overall spend on individual services. Minimizing their supplier base will ease administrative burdens, make their procurement team happy, and of course EVERYONE is happy when costs are cut. It’s a win-win!


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