Choosing the most suitable exchange can be a daunting task. Companies need to consider the pros and cons of each exchange and assess the extent to which each one can meet the company’s overall needs.
The level of activity of companies in conducting initial public offerings of securities can vary significantly depending on the general state of the market, the general “popularity” of IPOs, economic conditions in the industry, liquidity of the exchange, and many other factors. When the market is “bullish”, opportunities for securities offerings from companies open up, and these new offerings cause surges in IPO popularity. However, during periods of declining quotations, IPO activity decreases. Although no one can predict market trends with absolute accuracy, you should consider the importance of choosing the right time for your IPO and be prepared to adjust the deadlines set by the company. Typically, an IPO schedule, which includes the stages from the first meeting of the working group members to the completion of the process, is designed for a period of several months to a year or more. Active markets see a higher number of listings on the exchange, and all companies are eager to avoid the fate of executing a transaction one day late.
Russell Bedford RCG can assist you in considering your exchange selection.
