Credentials and Other Considerations. Information on the Issuer. Interviewing Research Analysts. Drawing up a Shortlist.
Obtaining Financing. Format of Oral Presentations.
IPO Banks Pitch, Selection and Mandate
Dealing with Further Marketing Efforts. How Many Lead Banks? Selecting Investment Banks. Communicating Declines. Managing Leaks. The Engagement Letter s. Customary Principles for Placement Agreements. The Kick-off Meeting. After the Kick-off Meeting.
Back Matter Pages Reassuringly, these moves appear to have been voluntary and precautionary, rather than at the behest of the authorities. Nevertheless, it's important to understand what is often required to win capital markets mandates in today's cutthroat environment. As a junior investment banker in London in the early s, the first interview question I was asked was about my father's work.
Shortly after leaving the firm, after a dozen years of service, I was cold-called by one of its senior bankers, eager to enlist my help to secure a mandate from a relative; I politely declined. Later, in Hong Kong, another firm for which I worked administered psycho-technical tests to all candidates, with an emphasis on selling capabilities. A favorite question was designed to gauge an individual's willingness to pitch business to family members. The reality is that investment banking is a harsh and hostile world.
Yes, some bankers are paid a lot of money, most of it as a variable component within their remuneration packages, but only for securing highly lucrative business for their employers. And that's true in Asia more so than in any other jurisdiction.
IPO Banks: Pitch, Selection and Mandate price from souq in Egypt - Yaoota!
Fees for Asian IPOs -- expressed as a percentage -- are between a third and half what they are in the U. So it takes many more transactions in Hong Kong to achieve the fee pool one can enjoy stateside. Also unique to Asia, most of the larger Chinese flotations now include a ridiculously high number of senior underwriters, sometimes a dozen or more book-runners as opposed to perhaps only four or five for comparable deals in London or New York : What is already a smaller pie from the beginning ends up being shared among more tablemates.
Many of the transactions in the region also fail to reach completion for one reason or another, be it recurring political turmoil as in Thailand , rising interest rates impacting real estate investment trusts and business trusts as in Singapore , or due diligence investigations uncovering practices that may render the issuer unsuitable for listing across all markets. Building a significant pipeline of IPO hopefuls, above and beyond that which may ultimately reach the listing stage, is therefore an imperative.
- Account Options.
- How to Create a Pitch Book?
- IPO Banks: Pitch, Selection and Mandate.
In recent years, competition for deals among investment banks in Asia has also reached new heights. Not only among the traditional U. Chinese banks such as CICC or Bank of China International have now mastered the art of pitching, often using lending relationships as leverage. Regional players from Southeast Asia such as CIMB are also aggressively wiggling their way into deals, their credentials sometimes bolstered by recent acquisitions.
Nowadays, IPO mandates are not just handed out but must be won, and more often than not, through hard work.
wamarideslau.tk The pool of state-owned enterprise candidates available for privatization has largely dried up and many of the Chinese private issuers that now apply for listing, principally in Hong Kong, are controlled by families, as indeed are a high proportion of the region's leading businesses. Convincing their shareholders to entrust mandates remains trickier than ever.
Balance sheets must be put to work through corporate loans or other commitments. Cornerstone investors must be secured to anchor IPOs.