The IPO CEO’s Guide: Key Considerations Before Going Public

Critical Success Factors

1. Valuation Strategy

• Avoid emotional pricing bias
• Compared with similar public companies
• Balance between market interest and company worth
• Work with multiple investment banks for accurate assessment

2. Cost Analysis

• Initial costs: 5-7% to underwriters
• Average IPO expense: $3.7M
• Annual public company costs: $1.5M
• Ongoing compliance and reporting expenses

3. Strategic Benefits Assessment

• Brand awareness impact
• Capital raising potential
• Market positioning
• Growth opportunities

Key Stakeholder Considerations

Employee and Early Backer Rewards

• Directed Share Program (DSP) implementation
• The balance between institutional and retail allocation
• Employee stock options
• Early investor considerations

Platform Solutions

ETNA-ClickIPO partnership offers:

• Efficient DSP handling
• Retail investor access
• Streamlined allocation process
• Enhanced distribution capabilities

Decision Framework

Consider:

• Business model sustainability
• Market Timing
• Competitive landscape
• Long-term growth strategy

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