What it costs to do an IPO

What it costs to do an IPO

If you're considering listing your company on a stock exchange in Europe, one of the key questions you'll need to answer is how much it will cost.

The IPO process can be expensive, with various fees and charges that need to be paid along the way. In the UK, for example, there are listing fees charged by the London Stock Exchange (LSE) as well as other associated costs such as compliance, legal and accounting fees.

One way to estimate the total cost of an IPO is to look at similar companies that have recently listed. This will give you a good idea of the ballpark figure you should be prepared to pay.

Of course, every IPO is different and there are many factors that can affect the final cost, so it's important to speak to experienced IPO advisers to get a more accurate estimate.

But as a general guide, here are some of the key costs you should be aware of when listing an IPO in the UK:

  • Listing fees: The LSE charges a range of fees for different types of companies, with the total amount depending on the size and value of your company. For example, a company with a market capitalisation of up to £250 million will pay £100,000 in listing fees.
  • Compliance and legal fees: There are various compliance requirements that need to be met when listing on the stock exchange, which can involve costly legal advice.
  • Accounting fees: IPO accounting can be complex, so you may need to use the services of a specialist accountant.
  • Marketing and investor relations: IPO marketing can be costly, particularly if you appoint an investment bank to help with the process. You'll also need to budget for on-going investor relations activities after your IPO. 

In addition to the costs mentioned above, there are also other potential costs that could arise during the IPO process, such as underwriting fees, printing costs and travel expenses. 

So, when considering an IPO in Europe, make sure you factor in all of the potential costs involved before making a final decision. speak to experienced IPO advisers to get a more accurate estimate of the total costs.