Advisors on The London stock markets are bracing themselves for what promises to be the busiest time in the past 6 years for new company flotations.
John Holland Managing Director of Holland Bendelow says ‘the noticeable increase in new listings on the UK stock markets over recent months is very welcome and there appears to be momentum behind the recent increase flotation activity’
Planning is key – However he expresses caution about companies rushing head first into a stock market flotaion. ‘It is extremely important that the management of companies considering a flotation allocate sufficient time to plan for flotation. The process itself puts time constraints on the management team and without careful planning, day-to-day business affairs can suffer and ultimately impact on the business some months down the line.’ He explains, ‘the importance of a company’s first set of trading results once they a floated cannot be over emphasised. If the management team take their collective eye off the ball in terms of their business during the flotation process this usually impacts on the profit and loss some months down the line. In worse cases scenarios this has a detrimental effect on a company’s first set of results which can impact on the companys share price, but more importantly, the long term credibility of the company in the eyes of stock market investors’.
His advice to companies preparing for a flotation is simple, ‘ get the management team right, get your advisor teams right, and work to a flotation timetable that works for your business and its particular set of circumstances rather than trying to fit in with the timetable of the city’.
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