A pre-IPO is capital raised by a company in the lead up to its planned IPO, generally priced at a discount to the IPO price.Pre-IPOs are mostly offered without a prospectus and are therefore only available to section 708 investors (as defined in the Corporations Act 2001 (Cth)).When a company undertakes a pre-IPO raising, there is no guarantee when or if the company will make it to the actual IPO, or what the IPO share price will be. Investors should be aware that there is a higher risk involved with pre ipo. To reflect this, pre-IPOs are usually offered at a discount to the anticipated IPO price.
A PLC must have a Company Secretary, as they can play a pivotal role in the restructuring of corporate governance, processes, internal controls, and any legal and financial obligations as well as the initial IPO process. If a company does not employ an in-house company secretary it will need to outsource the role to a corporate services business.
The decision to go public is an exciting moment for any company. It recognizes that the business is ready to push forward into the next stage of its development and marks a significant milestone in its history. Once the decision to undertake the initial public offering (IPO) has been made, however, there’s a great deal of work to be done before the Chairman gets to ring the opening bell.
While many companies zero in on operational issues, such as the timeline for the IPO and its associated cost, or the legal and financial aspects, there’s an important strategic element that can make the difference between success and failure: corporate governance. While Company Secretaries will find themselves pulled in a multitude of different directions as IPO fever sets in, they should try to stay true to their calling and recognize that their primary role as guardian of sound governance and compliance is vital to the ultimate success of the IPO and, therefore, deserves the highest levels of focus and support.
Ensuring that the correct procedure for appointing new directors is carried out. Also assisting with support and guidance to directors when needed. Certifying the company complies with statutory and regulatory requirements. As well as the introduction of corporate strategies and board decisions are followed. The company secretarial services also have a duty of communication with existing and new shareholders, acting as a point of contact.
Company Secretary Duties:
- Reviewable of corporate structure and company documents.
- Assist with reviewable of company compliance and corporate governance.
- Review policies and procedures relating to corporate governance.
- Attending board meetings, general meetings, and review relevant board minutes.
- Review letters and any documentation regarding the listing process.
- Adhere to the requirements of Stock Exchanges.
- Communication, registration, and monitoring of shareholders.
- Publications of company annual reports, accounts, and interim statements.
Company Secretary’s draw expertise from a vast array of areas; and can advise on corporate structure, board personnel, upgrade on internal systems as well as implementing group policies.