You might hear different answers, ranging from one million to tens of millions.
I have just completed the IPO for Agmo in August 2022 in KLSE Ace Market.
Our total IPO expenditure is RM3.3 million which comprises of:
– Principal advisor (include as sponsor, underwriter and placement agent)
– Legal
– IMR
– Auditor
– Prospectus launch and prospectus printing (both English and Bahasa)
– Issuing house
– Internal control and risk management
– Investor relationship
– Bursa submission fee
– Company secretary
The sequence is arranged from highest to lowest based on the expenditure.
When you are looking for advisors to form your Due Diligence Working Group (DDWG), please ensure the advisors have the track records in your industry.
For instance, we are in the tech industry hence we have looked for advisors who have done IPO for tech companies before.
You will be working closely with the DDWG for the period of 1 year and more in order for the due diligence process and preparation of the prospectus, hence it is important to select the best advisors to work with you.
Note that the final spending could different based on:
- The complexity of your business, such as how many years of establishment, is there many oversea subsidiaries
- The timing, if it is a hot IPO season, the advisors might swarm with businesses
- The negotiation with your advisors
- Your IPO is on LEAP, ACE or MAIN market
Most importantly, ensure your business has healthy growth and profit records, which will attract more investors to subscribe in your IPO.
Although BURSA does not have the requirement of after-tax annual profit in LEAP and ACE, but in order to have a successful IPO, the following profit after tax is recommended:
- LEAP market profit after tax is more than 1m
- ACE market profit after tax is more than 6m
- MAIN market profit after tax profit is more than 20m for 3 years, and the latest FY is more than 6m