The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

IPO's seen as the last financing option

IPO's are the final option for cash-starved corporates who have failed to raise capital elsewhere, concludes a study by the Association of Chartered Certified Accountants (ACCA).


Capital sources such as private equity, trades sales or venture capital all have to be exhausted before the IPO option is taken. The study also reveals that the costs of an offering invariably take up 10%-to-20% of the proceeds.


The survey of over 100 corporate treasurers to have undertaken IPO's also reports management upheaval, such as the creation of audit committees and the necessary adherence to corporate governance rulings. Investor demands also create challenges for management unaccustomed to such issues.


"In the light of recent declines in market capitalisations across the globe, governments and market regulators need to address the concerns found in this report, if new listed companies are going to replace those departing voluntarily or otherwise from the market," says Roger Davies, technical director of the ACCA.



You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree