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Sharing TBC’s experience on Successfully IPO on the LSE
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1 Sharing TBC’s experience on successful IPO on the London Stock Exchange Giorgi Shagidze 31 October 2014
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Presentation by Giorgi Shagidze, CFO, TBC Bank Georgia during the Ukrainian Banking Forum, 31 October 2014
Transcript of Sharing TBC’s experience on Successfully IPO on the LSE
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Sharing TBC’s experience on successful IPO on the London Stock Exchange Giorgi Shagidze 31 October 2014
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Disclaimer
The informaBon, statements and opinions contained in this PresentaBon do not consBtute a public offer under any applicable legislaBon or an offer to sell or solicitaBon of any offer to buy any securiBes or financial instruments or any advice or recommendaBon with respect to such securiBes or other financial instruments. InformaBon in this PresentaBon relaBng to the price at which investments have been bought or sold in the past, or the yield on such investments, cannot be relied upon as a guide to the future performance of such investments. This PresentaBon contains forward-‐looking statements, such forward-‐looking statements contain known and unknown risks, uncertainBes and other important factors, which may cause actual results, performance or achievements of TBC Bank Group (the "Company") to be materially different from any future results, performance or achievements expressed or implied by such forward-‐looking statements. Forward-‐looking statements are based on numerous assumpBons regarding the Company’s present and future business strategies and the environment in which the Company will operate in the future. Important factors that, in the view of the Company, could cause actual results to differ materially from those discussed in the forward-‐looking statements include, among others, the achievement of anBcipated levels of profitability, growth, cost and the recent acquisiBons, the impact of compeBBve pricing, the ability to obtain necessary regulatory approvals and licenses, the impact of developments in the Georgian economic, poliBcal and legal environment, financial risk management and the impact of general business and global economic condiBons. None of the future projecBons, expectaBons, esBmates or prospects in this PresentaBon should be taken as forecasts or promises nor should they be taken as implying any indicaBon, assurance or guarantee that the assumpBons on which such future projecBons, expectaBons, esBmates or prospects are based are accurate or exhausBve or, in the case of the assumpBons, enBrely covered in the PresentaBon. These forward-‐looking statements speak only as of the date they are made and, subject to compliance with applicable law and regulaBon, the Company expressly disclaims any obligaBon or undertaking to disseminate any updates or revisions to any forward-‐looking statements contained in the PresentaBon to reflect actual results, changes in assumpBons or changes in factors affecBng those statements. The informaBon and opinions contained in this PresentaBon are provided as of the date of the PresentaBon, are based on general informaBon gathered at such date and are subject to changes without noBce. The Company relies on informaBon obtained from sources believed to be reliable but does not guarantee its accuracy or completeness. Subject to compliance with applicable law and regulaBon, neither the Company, nor any of its respecBve agents, employees or advisers intends or has any duty or obligaBon to provide the recipient with access to any addiBonal informaBon, to amend, update or revise this PresentaBon or any informaBon contained in the PresentaBon. Certain financial informaBon contained in this presentaBon has been extracted from the Company’s unaudited management accounts and financial statements. The areas in which management accounts might differ from InternaBonal Financial ReporBng Standards and/or U.S. generally accepted accounBng principles could be significant and you should consult your own professional advisors and/or conduct your own due diligence for complete and detailed understanding of such differences and any implicaBons they might have on the relevant financial informaBon contained in this presentaBon. Some numerical figures included in this PresentaBon have been subject to rounding adjustments. Accordingly, numerical figures shown as totals in certain tables might not be an arithmeBc aggregaBon of the figures that preceded them.
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Content
Georgia and Banking Sector
TBC Bank at a Glance
Key for Successful IPO of TBC Bank
Future outlook
1
2
3
4
3
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Georgia and Banking Sector
Agenda
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4
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Manufacturing (11%) Wholesale, retail trade (17%)
ConstrucBon (5%) Agriculture, hunBng, fishing (9%)
Public administraBon (9%) Transport (8%)
Real estate (5%) Health and social work (6%)
EducaBon (6%) Hotels and restaurants (2%)
Financial intermediaBon (4%) Electricity, gas, water (3%)
CommunicaBon (3%) Other sectors (10%)
Georgia at a glance Fast growing and investor friendly economy with strategic locaGon at the gateway of trade between Europe and Asia
9.4%
12.3%
2.3%
(3.8%)
6.3%
7.2% 6.2%
3.2% 5.0% 5.0% 8.8%
11.0% 5.5%
3.0%
11.2%
2.0%
(1.4%)
2.3% 4.0% 5.0%
2006 2007 2008 2009 2010 2011 2012 2013 2014F 2015F
Real GDP growth rate (%) CPI (%)
Overview >
GDP development >
§ PopulaBon: 4.5 mn § GDP (Q1 2014 / 2013): USD 3.6bn / USD 26.8bn § GDP per capita (Q1 2014 / 2013): USD 804 / USD 3,597bn § Average real GDP growth (2007-‐2013): 4.8%
– 2Q 2014 Real GDP growth (yoy): 5.1% § Total banking assets / GDP (2013): 64.4%
Economy
§ Currency: Georgian Lari (GEL) § Exchange rates (30 June 2014): USD/GEL: 1.77; EUR/GEL: 2.41 Currency
§ Fitch : BB-‐/Stable § Standard & Poor's: BB-‐/Stable § Moody's: Ba3/PosiGve
RaGngs
§ The World’s #2 Reformer* § Fourth Friendliest Tax Regime globally** § #8 globally on the Ease of Doing Business; #8 on StarBng a Business*** § One of the most transparent countries in the world****
Recent achievements
Source: GDP, GDP per capita and real GDP growth are based on Geostat figures; ini;al es;ma;on for real GDP growth. (*) World Bank & IFC Doing Business Report 2014; (**) Forbes Tax Misery & Reform Index 2009; (***) Doing Business Report 2014; (****) Transparency Interna;onal 2013 global corrup;on barometer
Source: IMF World Economic Outlook database as at March 2014
7.7 10.2 12.8 10.8 11.6 14.4 15.8 16.1
Nominal GDP (USD bn)
16.6
IMF forecasts
GDP composiGon (Q1 2014) >
Diverse economy leverages its tradi;onal strengths in tourism (accoun;ng for 7%* of GDP) and agriculture (9%), as well as growing banking (4%) and manufacturing (11%)
Fastest growing sectors**
17.8
Most promising sectors***
Source: Geostat; GDP at Current prices (*) Source: Georgian Tourism Administra;on (**) Based on 2008-‐2013 CAGR (Real estate 15%, Educa;on 12.7%, Manufacturing 10.4%, Health and social work 10.0%, Financial Intermedia;on 9.9%) (***) Based on disclosed priori;es of the government reflected in 'Georgia: IMF le`er of intent'
5
Georgia Tbilisi Gori
Batumi Rustavi
Zugdidi
PoB Khashuri
Samtredia
Turkey Armenia Azerbaijan
Russia
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2010 2011 2012 2013 1Q 2014*
Currency Rate (USD/GEL, EUR/GEL) >
1.65 1.66 1.74 1.75 1.77
2.16 2.25 2.39 2.40 2.41
30-‐Jun-‐13 30-‐Sep-‐13 31-‐Dec-‐13 31-‐Mar-‐14 30-‐Jun-‐14
USD/GEL EUR/GEL
• Georgia signed an AssociaBon Agreement, including deep and comprehensive free trade area (DCFTA) with EU, on June 27
• Local elecBon was held on 15 June 2014: o CoaliBon party ‘Georgian Dream’ won the elecBons in
second round with substanBal majority of voted in Tbilisi and in other major ciBes
PoliGcal Developments >
1.3 1.9 1.3 1.0 1.2
Number of tourist arrivals (in mn)
Source: Exchange rates based on NBG; Tourism numbers based on GNTA
6
Strong and ongoing economic revival >
Increasing FDI flows are sBll below historical highs
Tourism revenues have recovered strongly
1 2
7.0 7.7 5.8 5.8
FDI (USDmn) FDI (% of Nom. GDP)
2010 2011 2012 2013
Foreign currency revenues from incoming tourism (USD mn)
Source: Geostat (*) Preliminary data for 1Q 2014, not annualised Source: Georgian Na;onal Tourism Administra;on
Addi;onal Info: Number of tourist arrivals have increased by 2% in the first half of 2014.
Tax Regime in the Country >
2.2 1.9 2.1 2.3 2.7 2.8 2.8 2.8 2.8 2.8 2.9 2.9 2.9 3.0 3.1 2.8 2.6 2.5
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
Source: NBG (*) Includes foreign currency reserves, SDRs, IMF reserve posi;on, gold and other reserve assets
Strong reserves solidifying the financial stability 3
Gross internaBonal reserves* (USDbn)
2010 2011 2012 2013 2014
Source: Geostat, (*) cumula;ve, 2009 – 3M 2014
Georgia at a glance cont’d
7.2
‘04 ‘14F
Number of Taxes 21 6
VAT 20% 20%
Income Tax 12-‐20% 20%
Social Tax 33% -‐
Corporate Profit Tax 20% 15%
Dividend & Interest Income Tax
10% 5%
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6,018
4,694
1,503
1,026 1,017 870
666 593 513 469
3,552
2,996
746 723 748 560 454 354 280 221
BOG Liberty Bank Procredit Cartu KOR Standard
Banking sector landscape >
Source: NBG (*) Liquid assets to deposits ra;o amounted to 57% as at Q2 2014; where liquid assets are defined as the sum of cash, balance of correspondent accounts, securi;es for dealing opera;ons and investment securi;es (**) As at 30 June 2014, under NBG standard disclosure (***) As at 30 June 2014, under NBG standard disclosure; TBC Bank figures include Constanta
2.6 25.6 8.2 5.6 5.5 4.7 3.6 3.2 2.8 32.8
Top-‐10 largest banks by total assets in Georgia, as at 30 June 2014 (GEL mn)**
2.0 26.7 6.6 6.4 6.7 5.0 4.0 3.2 2.5 31.6
Total assets (GEL mn) Total loans (gross, GEL mn) Market share by total assets (%) *** Market share by total loans (gross, %) ***
Domes;c Domes;c Domes;c Foreign Foreign Foreign Domes;c Foreign Foreign Foreign
Top 4 domesBcally-‐controlled banks* (71%)
Strategic investor-‐controlled banks** (21%)
Other banks (8%)
Market share by total assets as at 30 June 2014 (%)
Source: Company informa;on, NBG (*) Includes TBC (with Constanta), BoGeorgia, Liberty Bank and Cartu Bank; (**) Includes ProCredit Bank, VTB, PrivatBank, BTA, Bank Republic, Halyk Bank and Interna;onal Bank of Azerbaijan
7
34 39 40 53 60 64 65 69 74 34 36 29 49 57 49
86 61 80
Deposits / GDP (%) Loans / GDP (%)
Loan to GDP and deposits to GDP – 2013 >
Source: Na;onal banks and bank regulators (*) Eurobonds have been excluded from customer deposits; (**) Mortgage loan as % of GDP 2011 (%); source: HelgiLibrary
Real loan growth
(1) Data as at 2009 (2) Data as at 2012
(6.3)
6.312
20.2
5.79
8.0
4.981
11.1
2.71
3.9
20.42
11.8
n/a
5.2
21.12
20.0
5.90
0.7
11.7
Mortgage PenetraBon
Loan to GDP and deposits to GDP – 2013 >
Source: Na;onal banks and bank regulators, Fitch, IMF
5.9 5.5 2.8 6.0 16.9 31.2 17.4 3.8 21.9
Impaired loan / total loans (%) Equity/Assets (%)
Banking sector compeBBve landscape
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TBC Bank at a Glance
Agenda
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8
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TBC at a glance
BB-‐ / Stable (FC Long Term IDR) B (FC Short Term IDR)
B1 / Stable (Bank Deposits – Fgn Curr) Ba3 (Bank Deposits – Dom Curr)
RaGngs (affirmed on 14 June 2013)
(affirmed on 03 Sep 2014)
Financial highlights (consolidated figures)* > Key facts >
§ Overview: A leader in the Georgian banking market
₋ #1 bank by retail deposits and top 2 bank across other key segments
₋ Awarded "Best Bank in Georgia" for 11 of the last 13 years** (18 awards in total)
§ Customer base: Strong operaBons across all the major market segments in Georgia
₋ c.1 million customers in retail, SME, micro-‐finance and corporate segments
§ DistribuGon: c.4,600 employees across the naBonwide distribuBon network
₋ 118 branches (including 58 branches of Bank Constanta)
₋ 319 ATMs (up to 800 including partner banks)
₋ 3,264 POS terminals (2,494 contactless) & 2,593 Cash-‐in terminals
§ OperaGons: in addiBon to banking operaBons in Georgia, includes:
₋ Non-‐banking subsidiaries in Georgia in brokerage and leasing segments
₋ Subsidiaries in Azerbaijan (TBC Kredit) and Israel (TBC Invest)
(*) Market posi;on, number of customers as at 30 June 2014, distribu;on network related figures as at 30 June 2014; (**) The Banker Awards (2002, 2003, 2004, 2005, 2010, 2011), Euromoney (2011, 2012, 2014), Global Finance magazine (2004, 2006, 2007, 2012, 2013, 2014), EMEA Finance (2011,2012,2013);
GEL mn USD mn Total assets 4,798 2,712 Customer loans (gross) 3,078 1,740 Customer deposits 2,929 1,656 Shareholders' equity 926 524
Key figures* (30 June 2014)
ROE 19.3%*** Cost-‐income raBo 48% NPL raBo** 1%
Key raGos (1H'14)
Gross L/D raBo 105% Tier 1 raBo (BIS) 26%
(*) Exchange rate used: USD/GEL 1.7691 as at 30 June 2014 , (**) Does not include restructured loans, (***) annualised
Current shareholding structure (June 2014) >
Free-‐float 40.0%
EBRD 12.5%
DEG 3.6%
FMO 4.4%
JP Morgan 1.6%
Ashmore 2.7%
Founders 22.4%
Top Mngmt 3.0%
Middle Mngmt 0.4%
Other 3.3%
IFC 6.2%
9
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10
§ TBC is established ₋ IniBally focused on the corporate
segment with emphasis on SMEs
§ First IFIs enter TBC's shareholding structure ₋ IFC and DEG each acquire 10% of
TBC's share capital
§ Launch of non-‐banking operaGons ₋ TBC Leasing established by the Bank (to
become later market leader with 61% market share as at 31 December 2013)
§ TBC enters export/import financing operaGons segment
§ Development of retail banking offering / further investment by EBRD ₋ Retail product development /
markeBng strategy implemented with support from BBDO (markeBng) and SENTEO (consulBng)
₋ EBRD acquires 9.9% shareholding in TBC Leasing
§ Geographic expansion abroad ₋ TBC acquires 75% shareholding in TBC Kredit
(formerly SOA Kredit), a non-‐banking credit insBtuBon in Azerbaijan
§ Broadening of the shareholder base and capital increase ₋ EBRD, FMO, JP Morgan and Ashmore
become shareholders in TBC Bank, whilst IFC and DEG contributed addiBonal capital
§ Further expansion ₋ TBC Invest is established – TBC's
representaBve office in Israel ₋ TBC acquires 80% shareholding in Bank
Constanta, which specialises in micro-‐financing segment
§ Launch of mulGchannel distribuGon systems & new projects ₋ New internet & Mobile banking
(iPhone, iPad, Android, Blackberry applicaBons, PDA mobile banking)
₋ 'Lean Banking' project
§ Basel II/III implementaGon project § Sensory markeBng iniBaBve § Start of IntegraBon of Bank Constanta § CRM project
2012
2011
2007
2006
2000
2009
1992
1998
2012-‐13
History so far
2004
2014
§ Successfully completed IPO and listed GDRs on the LSE
§ TBC Bank’s ownership reached 100% in Bank Constanta
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High Growth, Strong and Consistent Profitability
NPLs (PAR 90)*
1.0%
1.1%
1.0%
0.6%
Net Profit
73
124
98
92
Gross Loans
3,078 (4.0% growth)
2,959 (16.6% growth)
2,537 (17.0% growth)
2,167 (40.0% growth)
Total Assets
4,798 (7.8% growth)
4,451 (14.1% growth)
3,900 (18.2% growth)
3,300 (45.5% growth)
ROaE (annualised)
19.3%
18.7%
18.6%
21.8%
C/I**
48.3%
52.1%
56.8%
54.2%
**2009 Cost to Income Ra;o excludes extraordinary income *NPL ra;os include accrued interest
30 Jun 2014
11 Q2 2014 Investor PresentaBon
2011
2012
2013
30 Jun 2014
2011
2012
2013
Q2 2014
2011
2012
2013
30 Jun 2014
2011
2012
2013
Q2 2014
2011
2012
2013
Q2 2014
2011
2012
2013
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12
Focus on remote access services >
MulG-‐channel capabiliGes (% of total number of transacGons)
Internet banking (8%) Branches (9%) ATMs (41%) POS terminals (29%) Cash-‐in terminals (13%)
1H 2014 6M 2014
Strong brand and well-‐regarded franchise >
§ TBC has been named “Best bank in Georgia”:
6 Gmes 6 Gmes 3 Gmes 3 Gmes Highest number of such awards of any bank in Georgia
§ Superior customer experience is one of the differenBators of TBC § TBC is a market leader in Georgia in terms of customer experience
§ A “Mystery Shopping” study named TBC as the friendliest provider of
banking services in Georgia
91%
93% 95% 95%
95% 96% 96% 96%
2010 -‐ IH 2010 -‐ IIH 2011 -‐ IH 2011 -‐ IIH 2012 -‐ IH 2012 -‐ IIH 2013 -‐ IH 2013 -‐ IIH
DistribuBon plauorm: remote distribuBon channels
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12.75 13.25 13.75 14.25 14.75 15.25 15.75 16.25
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TBC Bank IPO Team >
Share Price Performance >
TBC Bank IPO Date >
• TBC Bank conducted its IPO on June 11, 2014
• IPO raised $239m valuing company at $640m
• GDRs to trade on London Stock Exchange’s InternaGonal Order Book
• The largest off-‐index IPO ever from Europe Middle East and Africa
• The largest IPO ever from Georgia on any stock exchange
Syndicate Team
Legal Team
Auditors, PR Agencies, Other
Press About TBC Bank IPO >
2 Sep 2014 TBC Bank GDR
Closing Price: USD 16.45 Volume: 463,779
TBC Bank IPO -‐ the largest off-‐index IPO ever from EMEA
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14
Key for Successful IPO of TBC Bank
Agenda
3
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-‐9 41 -‐26
185 129 -‐15
-‐120 -‐229 -‐338
-‐449
-‐500
-‐300
-‐100
100
300
500
2006 2007 2008 2009 2010 2011F 2012F 2013F 2014F 2015F
Total Capital Gap VariaGon -‐ Investment in Subsidiaries
Total Capital Gap VariaBon -‐ Investment in Subsidiaries
595 1,173 1,421 1,121 1,490 2,052 2,597 3,268 3,997
4,865 56.5%
97.2%
21.1% -‐21.1%
32.9% 37.7% 26.6% 25.9% 22.3% 21.7%
-‐
2,000
4,000
6,000
2006 2007 2008 2009 2010 2011 F 2012 F 2013 F 2014 F 2015 F
TBC Loans Growth %
TBC Loans >
GAP in Capital >
Strategic Session with McKinsey Munich Office
• Overall Strategy Review • IdenBficaBon of New Strategic IniBaBves
• How to differenBate the bank • Best PracBces in Banking
ExecuGve educaGon with Harvard Business School:
• Strategic IQ by John Wells
Under the Basel ImplementaGon Program Ernst and Young helped TBC
Bank to develop: • Format of Strategy document, • Risk Strategy, • Risk Maps • Risk AppeBte
Develop the long term business plan
I II III
15
Two of the strategic iniGaGves proved fundamental in the Banks differenGaGon:
MulGchannel upgrade
Enhanced customer experience
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Advantages: • Access to addiBonal capital • CreaBon of liquidity and potenBal
exit for the current owners • Maximum value of the company • Enhancement of the company’s
public profile • Enhanced loyalty of key
personnel
Disadvantages: • Increased Cost for preparing for
IPO and on ongoing basis • Loss of flexibility • Management Bme and effort
during IPO and awer
IPO Rights Issue Private Placement Strategic Investor
Out of five different opBons for raising capital discussed on this slide, IPO is the best choice.
Advantages: • Less risky than an IPO • Is less dependent on market
condiBons compared to IPO Disadvantages: • Requests addiBonal funding from
exisBng shareholders • Is a temporary soluBon, in the
long term the bank might need addiBonal capital
Advantages: • Excepted price can be higher
than that of IPO • TBC might benefit from the
know-‐how of strategic investor • TBC might benefit from less
expensive funding through strategic investors
Disadvantages: • In the current market, all the
major banks stopped considering expansion across regions. Moreover, some of them even started to exit other countries (e.g. HSBC)
• Loss of control for the exisBng shareholders
Advantages: • Does not require addiBonal
funding from exisBng shareholders
• Might receive capital funding enough to finance growth for several more years
Disadvantages: • Expected price can be too low to
jusBfy • Might be a temporary soluBon, in
the long term the bank might need addiBonal capital
• Loss of control for the exisBng shareholders
• QuesBon on what addiBonal value can the addiBonal shareholder add to the bank
• In the current market this opBon is limited
EOSP or Georgian Shareholder Club
Advantages: • SubstanBally increased
moBvaBon of the employees • Does not require addiBonal
funding from exisBng shareholders
Disadvantages: • Even if happens, might be a
temporary soluBon, in the long term the bank might need addiBonal capital
• Doubt that employees and/or Georgian individuals can have enough money
• Whatever money they can have they would not be willing to invest in illiquid shares
Benefits of Being Public
Access to addiGonal capital
CreaGon of liquidity and potenGal exit for the current
owners
Maximum value of the company
Enhancement of the
company’s public profile
Enhanced loyalty of key personnel
AlternaBves of capital raising
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17
Corporate governance structure Corporate governance framework already compliant with Basel II
External Auditor
Audit Commiree
Risks, Ethics and Compliance Commiree
Corporate Governance and NominaGon Commiree
RemuneraGon Commiree
§ Supreme governing body § Nominates Supervisory Board members § Approves changes to the Charter and capital § Approves reorganisaBon or any other significant
change in the corporate structure
§ Supervisory Board consists of 7 members, o/w two members are independent and three members represent IFI shareholders
§ Supervises the acBviBes of the Bank § Appoints the Management Board members § Elects external auditor of the Bank § Creates Audit Commixee § Approves investments over USD 1,000,000
§ Appointed by the Supervisory Board § Consists of 7 members in total § Among them -‐ Chief Risk Officer (CRO)
§ 14 years of audited financial statements by ‘Big 4’
§ Current Auditor: PwC, 4 years § Half-‐year reviews since June 2011
§ Reports to the Supervisory Board; § The Commixee has an IFI-‐
nominated Chairman
§ Supports supervision of the Risk Management, Develops Appropriate Culture in the Bank and Compliance
§ Approves related party loans exceeding USD 100,000
§ Controls the FuncBoning of Corporate Governance and nominates and evaluates candidates
§ Advises the Supervisory Board on the compensaBon system for the Supervisory and the Management Boards
§ Based on the recommendaBons of E&Y and KPMG, remuneraBon principles/system for the SB members have been suggested by the RemuneraBon Commixee and approved by the AGM
Shareholders (Annual General MeeBng)
Management Board
Supervisory Board
196 33 40
147 39 146
0 192 142
146 150 153
55 96 146
147 219 255
99 37 35
217 150 148
102 0 102
204 153 255
217 217 217
89 89 89
0 170 233
18
PosiBon yourself
Business model focused on core banking acGviGes in Georgia 3
Strong track-‐record of growth and profitability 2
Resilient and high quality balance sheet 6
Strong brand, superior customer experience and an award-‐winning franchise 4
A leading mulG-‐channel distribuGon plasorm 5
1 Leading posiGons in an arracGve market poised for profitable growth
Experienced management team and high quality corporate governance 7
196 33 40
147 39 146
0 192 142
146 150 153
55 96 146
147 219 255
99 37 35
217 150 148
102 0 102
204 153 255
217 217 217
89 89 89
0 170 233
19
IPO Standard Windows: Recent Trend is that they are geung shorter W
indo
ws
for a
n IP
O
Mar
Based on Q3 financials
12-Feb, Q3 figures 135-day cut-off point
Jan Feb
Window D
Based on Q1 financials
15-May, FY figures 135-day cut-off point
13-Aug, Q1 figures 135-day cut-off point
12-Nov, H1 figures 135-day cut-off point
Sep Oct Nov Apr May Jun Jul Aug
Window C
Based on H1 financials
Based on FY financials
Window A Window B
Dec
Com
petin
g pi
pelin
e
Select the Team
Draw a Document / Conduct Due Diligence (Bankers & Research)
File RegistraBon Statement with the UKLA/SEC
MarkeBng (Roadshow) Pricing / Trading
PreparaGon Phases, 9 -‐12 months from launching -‐ assuming that the issuer is mature enough in Finance, ReporGng and Corporate Governance
Key for successful execuBon – Bmeline
196 33 40
147 39 146
0 192 142
146 150 153
55 96 146
147 219 255
99 37 35
217 150 148
102 0 102
204 153 255
217 217 217
89 89 89
0 170 233
20
MarkeGng approach should be based on the following principles:
Targeted investor
education
1.5 - 2 weeks
Pricing
Non-deal roadshows / conferences
Management deal roadshow
Early marketing to investors. Securing anchor orders
1.5 - 2 weeks
6-9 months
Proactive IR approach pre-IPO Public marketing
It is highly important to initiate communications with large funds well in advance of the transaction launched publicly
MarkeGng Approach >
Public launch
Management roadshow and
bookbuild start / Strong book message
• Credible size and structure of the offering – to secure the success of the deal and maintain support for the stock in the awermarket
• Establishing effecBve pre-‐deal relaBonships with key internaBonal investors via NDRs, conferences
• Be ready early enough and wait for appropriate window
• Fast execuBon of the deal – the longer it takes the more market risk it is exposed to
• Support from key accounts ahead of the offering – in order to be able to provide a strong book coverage message at the Bme of launch
Key for successful execuBon -‐ Early educaBon is very important
196 33 40
147 39 146
0 192 142
146 150 153
55 96 146
147 219 255
99 37 35
217 150 148
102 0 102
204 153 255
217 217 217
89 89 89
0 170 233
Going Forward
21
Agenda
4
196 33 40
147 39 146
0 192 142
146 150 153
55 96 146
147 219 255
99 37 35
217 150 148
102 0 102
204 153 255
217 217 217
89 89 89
0 170 233
Life as a public company a
22
More Global
1
Increased pressure from local and internaBonal regulators
2
Increased requirement for finance skills
3
196 33 40
147 39 146
0 192 142
146 150 153
55 96 146
147 219 255
99 37 35
217 150 148
102 0 102
204 153 255
217 217 217
89 89 89
0 170 233
Thank you
23
Q&A
