Azim Premji, the chairman of Wipro, enumerated the prerequisites
for a successful overseas listing at the recently concluded
seminar on 'IT at the stock market' held at the Indian
Institute of Science, Bangalore.
The first thing foreign investors scrutinise are business
and revenue models. Make sure this is in place.
There should be concrete reasons for wanting to go for
an IPO in an overseas bourse. It should be something very
clear like to raise funds for developmental or acquisition
needs, or to build a global brand.
Investors will constantly scrutinize your organisation.
The company's entire senior management will be heckled and
ragged by investors. They should be prepared for this.
Timing of the IPO is important. A company should not rush
into an IPO. It is advisable to delay an IPO as much as possible
if the company is in the growth phase. However, if the idea
is to create a global brand or offer overseas stock options
or global acquisitions, then the company could go ahead with
the IPO.
Listing and post-listing expenses are high. Make sure you
have the necessary funds for it.
Investor relations are built on trust. Make sure you deliver
what you've promised, and this includes both explicit and
implicit promises.
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