CAPITAL MARKETS
The goal of the Capital Markets group is to identify companies in the markets we operate in and assist them with the process of going public on one the 31 exchanges where the funds OCI advises participate on. Our advisory work is focused on two principle ideas:
1) Investors in local regions and developed capital markets continually look for ways to invest in high growth cash flow positive companies. Many of these such companies are located in Emerging Markets.
2) Companies in domestic markets tend to go public on their home exchange, generally because they don’t know the process by which or why to go public on an exchange in a different market.
OCI looks to bridge this gap, by locally identifying companies that can make avail of public capital markets. Firms and funds in these markets are constantly looking for new companies to list and invest in. As an example, there are 51 Asian companies listed on the Toronto Stock Exchange and 150+ on the NASDAQ. By accessing international public capital, these companies are able to grow and are able to further develop their business by being a publicly listed company – whether it be because they are listed; or with the capital stock available for joint venture, merger and acquisition deals. These companies are also able to raise additional funds in follow on financings, generally as their stock grows and appreciates in value.
In Advising on Initial Public Offerings we act as an independent advisor to the owners, management and board of private companies contemplating an Initial Public Offering (IPO). The value added of this service is based on the inherent complexity of the IPO process and the contradictions that can exist between the interests of the company's owners, and the various service providers. With an interest in deriving the best value for the company, we look to identify the Stock Exchange and Marketplace that is best for the particular company’s size and sector. Given that we deal with 31+ exchanges and have capital markets relationships across the world, we look to ensure that we provide the best advice and options to a company. We make certain the company has the best opportunity for success as a public company irrespective of location and geography. OCI provides a unique combination of capabilities for optimum value added in this process.
Value Added of OCI’s IPO Advisory
OCI provides a unique combination of capabilities for optimum value added in IPO advisory:
Experience
- Core team with years of hands-on deal experience and a long-standing successful track record from boutique to bulge bracket banks in structuring and placing significant equity offerings
- Depth of first-hand experience with varied and complex deal situations
- Unique platform for IPO Advisory through direct access to numerous different equity markets
Proven expertise in IPO planning and execution:
Independence
- OCI is fully owned by management and staff and completely independent
Independent and free from conflicts of interest:
In fulfilling its advisory task, OCI will tailor its approach and degree of involvement flexibly to suit the client's specific needs.
In the IPO Process:
Preparation Phase
- Assessing the readiness of the company for life in the capital markets - and advising on concrete measures to prepare the company
- Evaluating the decision as to whether to pursue an IPO – benchmarking with other strategic options and advising on implications for the company and current owners
- Assessing the timing of the IPO against the state of the equity markets
- Developing the cornerstones of the company’s equity story
- Pre-selecting syndicate members and other service providers (e.g. issuer’s legal counsel, accountants, PR advisors) - based on first-hand experience from previous transactions
In the IPO preparation phase, we support in:
Execution Phase
- Setting up an optimum selection process for the underwriting banks and other service providers – and ensuring the right engagement terms and incentives for these firms
- Identifying critical issues and providing an independent second opinion - e.g. on key issues such as valuation and syndicate structure
- Providing direct and unbiased information from the equity markets - originating from OCI’s worldwide capital markets presence
- Sophisticated “extended work bench” and assistance in process management - e.g. facilitating superior service from service providers
- As well as process transparency by defining and monitoring information milestones
In the IPO execution phase, we are acting as a pro-active and unbiased advisor to the management board and/or the current company owners in all steps of the process:
Once public, the company is able to continue to tap in to the talent pool and resources available to OCI. This can include looking to raise funds abroad or in home markets to identifying M&A transactions and helping the company continue to grow