Funding for growth
Exploring options for raising
capital — IPO
For further information contact:
Tim Medak
Partner, Ernst & Young LLP
+ 44 (0)20 7951 7491
tmedak@uk.ey.com
Graham Swindells
Director
+ 44 (0)20 7951 6071
gswindells@uk.ey.com
Mark Harrison
Account Director
+ 44 (0)20 7951 5142
mharrison3@uk.ey.com
or visit: www.ey.com/uk/ipo
The roles of the sponsor and
financial advisor
For most companies, achieving quoted company status will fulfil important objectives for
its founders as well as securing the necessary finance and access to future capital for its
continued growth.
When floating on London’s Main Market, there are a plethora of advisors that you need
to appoint to assist you in this journey. Investors will look to your advisors to generate
value and strategies for organizational improvements. Two of which are a sponsor and a
financial advisor.
Sponsor
A preliminary step in floating on London’s Main Market is to appoint a sponsor. The
sponsor takes a central role in the flotation process, advising the company on a wide
range of issues. A sponsor must have been approved by the UK Listing Authority (UKLA).
The sponsor’s obligations include:
►► Determining whether the business and its management are appropriate for a listing on
the Main Market
►► Considering the company’s working capital position and its financial reporting
procedures
►► Advising the directors on the application of the listing rules
►► Advising on the preparation of the prospectus, the company’s principal marketing
document
►► Liaising with the UKLA, including agreeing the company’s eligibility for listing and
vetting of the prospectus
►► Assisting in the application for admission of the shares to the Main Market and to
trading on the London Stock Exchange
 Ernst & Young

Assurance | Tax | Transactions | Advisory

About Ernst & Young

Ernst & Young is a global leader in
assurance, tax, transaction and advisory
Financial Advisor services. Worldwide, our 144,000 people
are united by our shared values and an
Additionally, the sponsor or an other advisor may perform the role of financial advisor
unwavering commitment to quality. We
to a company on an IPO. This role would include: make a difference by helping our people,
►► Assessment of IPO readiness our clients and our wider communities
achieve their potential.
►► Guidance on any restructuring required to make the company suitable for listing
Ernst & Young refers to the global
►► Initial valuation work organization of member firms of
Ernst & Young Global Limited, each
►► Consideration of capital requirements, the best method of flotation for the of which is a separate legal entity.
company and the flotation timetable Ernst & Young Global Limited, a UK
company limited by guarantee, does not
►► Advice on the appointment of brokers, lawyers, reporting accountants, PR and provide services to clients. For more
coordination of their activities information about our organization,
please visit www.ey.com.
►► Input into pricing of the IPO
About Ernst & Young’s IPO Offering
►► Overall project management of the IPO process Ernst & Young thrives on helping
Following the flotation, a sponsor must be engaged by the company in respect of any companies to deliver successful initial
public offerings (IPOs). Our strategic
future transaction which requires a sponsor. Hence, you need to select a sponsor that
growth markets professionals, who are
will complement your company. dedicated to serving future market leaders
worldwide, help businesses like yours
Ernst & Young’s Sponsor and Financial Advisory services evaluate the pros and cons of an IPO.
We demystify the process, examine the
After listening to the needs of our clients, Ernst & Young now offers you the alternatives and help prepare you for life in
opportunity to engage Ernst & Young as their sponsor and financial advisor on IPOs. the public spotlight. On average, we help a
company go public every business day of
Ernst & Young’s Sponsor team has extensive IPO experience, having been drawn the year. Our market-based insights and
from investment banking and broking backgrounds. Ernst & Young does not act as an landmark IPO retreats, held in every major
underwriter and is therefore able to provide clients with independent and objective market worldwide, can help your business
advice when acting as sponsor and financial advisor on all aspects of their IPO. achieve its potential. It’s how Ernst &
Young makes a difference.
To find out more about how Ernst & Young can add value to your company by acting as
your Sponsor and/or financial advisor, please contact the team displayed on the front.
© 2010 EYGM Limited.
All Rights Reserved.
Thinking of floating?
EYG no. CY0082
The Ernst & Young IPO Retreat is the perfect platform to help you understand and
evaluate your options and what each involves. It is a unique way for you to become In line with Ernst & Young’s commitment to
minimize its impact on the environment, this
immersed in the issues. At the Retreat you will hear from business leaders who share document has been printed on paper with a
their experiences of floating their own companies and from accountants, brokers, high recycled content.

lawyers and financial PR advisors who have worked with fast growth businesses and This publication contains information in summary form
understand what it takes to deliver a successful IPO. Ultimately, the Retreat will help and is therefore intended for general guidance only. It
is not intended to be a substitute for detailed research
you gain a candid and practical insight into the float process and enable you to make or the exercise of professional judgment. Neither EYGM
the right decision for your business. Limited nor any other member of the global Ernst &
Young organization can accept any responsibility for
To find out more, please contact those listed on the overleaf. loss occasioned to any person acting or refraining from
action as a result of any material in this publication. On
any specific matter, reference should be made to the
appropriate advisor.

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2 Funding for growth Exploring options for raising capital — IPO