What is an IPO?
An initial public offering of a company means that the company's shares become admitted to trading and can then be freely traded on the stock exchange, giving the public the opportunity to acquire shares in the company. For example, companies can choose to have their shares listed on Nasdaq First North, Nasdaq First North Premier, Nasdaq Copenhagen, Spotlight or other similar stock exchange platforms.
When a company becomes publicly listed, it is possible to list existing shares and/or newly issued shares. At the initial listing, the offering structure and the share price and thus the value of the given stock is determined. Once the stock is admitted to trading, the share price can then rise and fall depending on the ongoing development of the market and the supply and demand for the stock.
Benefits of going public - quality stamp and access to continuous capital
Becoming a publicly listed company not only ensures capital at the IPO date but also access to capital in the long run, in case additional capital should be necessary for the company to be able to expand and execute its strategy and growth plans. Furthermore, an IPO functions as a quality stamp as listed companies are subject to strict requirements in relation to disclosure obligations and accounting practices, which should help create transparency for shareholders and other stakeholders. This also helps to increase the company's visibility and exposure to a wider circle of both customers and investors.
As your company develops, it is important to consider the appropriate ownership structure - typically, at different stages in the company's growth journey, it will make sense to bring certain types of investors into the ownership circle. Secondary capital injections can be a good opportunity to attract larger institutional investors, but to attract these types of investors, it is crucial that the company builds momentum in the market by executing on the growth plans and initiatives that have previously been communicated to the market.
Examples of publicly listed companies
Below is a list of selected companies that Grant Thornton Corporate Finance has assisted in connection with their IPOs on Nasdaq First North, Nasdaq First North Premier and Nasdaq Copenhagen. All companies have issued new shares in connection with the IPO. Selected companies include, among others:
- Trophy Games
How does your company become publicly listed?
Going public or carrying out secondary capital increases requires good preparation and a wide range of strategic and financial consideration, which means that the company will have to deal with many new aspects and issues. Naturally, this can be both stressful and overwhelming for you as a company manager, which is why we as a financial advisor/Certified Adviser, in close collaboration with the company's other advisors, make sure to assist and guide you through the entire process. Based on our in-depth process experience, we ensure that you get the best possible process and that you can focus on running your business throughout the process. We advise on and assist with the following:
- Assessment of IPO readiness and timing of a potential IPO/capital injection.
- Preparation and identification of potential risks.
- Board composition and organizational structure.
- Planning and review of alternative transaction strategies.
- Completion of capital raises prior to the IPO (pre-IPOs).
- Strategic considerations and sparring in relation to growth plan and budget model.
- Inputs to different valuation methods and structuring of the offering.
- Preparation of investor material and dialogue with cornerstone investors.
- Completion of the capital raise.
- Review opportunities for research and equity coverage towards and after IPO.
- Inputs for structuring warrant and share programs for employees.
- Open and transparent communication with the market (as well as our recommendations for choosing a PR advisor).
- Secondary capital increases and change of marketplace (e.g. switching from First North to the Main Market).
- Block sale - selling existing shares on the secondary market.
We advise on and complete initial public offerings and secondary capital raises for dynamic growth companies with a well-documented product-market fit, international potential, and a market-leading position in Denmark or another Nordic country. We advise companies in all sectors, but have gained a particularly strong position within Tech and SaaS (Software-as-a-Service). However, we have also assisted several companies in other verticals. Grant Thornton is an approved Certified Adviser by Nasdaq Copenhagen.