Initial Public Offerings

“STJ’s data-driven process, overlaid with its extensive deal expertise, was invaluable in building consensus across the stakeholder group and taking the right decisions”
Private Equity Executive

An IPO is a “mission critical” process, in a field where management and major shareholders frequently generally lack previous direct experience. Material value and time can be lost if the right decisions are not taken at every step, and having a world-class ECM and research team on your side of the table will ensure that you get the best deal done.

We rely on an intensive data capture and reporting process, ensuring that the stakeholders have the most complete picture of investor reaction and positioning as the IPO progresses. By ensuring greater transparency and the broadest investor coverage, STJ dramatically increases the chances of success. STJ-advised IPOs have an unprecedented 100% completion rate, well in excess of the average 67% market rate and that of other advisors. Our proven data-driven process also ensures more accurate pricing, with a far narrower first day trading range of the share price (the range across all STJ-advised IPOs is c. 1/3 that of our major advisory competitors).

STJ has been a strong proponent of early investor engagement, which is part of the reason behind our high success rate. We run a unique and exhaustive bank selection process, to ensure you select the best syndicate that will deliver the broadest possible investor coverage, with all banks fully motivated to out-perform.

Broad and effective investor education will both support an IPO and, just as importantly, drive the aftermarket performance once shares are listed and trading (see Follow-on Offerings/Capital Increases).

We use our Investor Mapping analysis, investor feedback and behaviour tracking, and “Atlas” database to confirm shares are allocated to the most supportive investor base, supporting a stable aftermarket.

STJ was noted as the only advisor to improve pricing and proceeds in the first academic study that compares the performance of independent IPO advisors over 7 years and 739 offerings in Europe (completed at Cass Business School)(1). STJ achieved both the highest success rate (measured as a percentage of deals priced vs. withdrawn) and the most consistent pricing / best results, generating average improvement in proceeds to issuers of $79.4m per deal. There were only two other advisors with a statistically relevant number of offerings to compare - with one advisor leaving an average of $64.3m in proceeds on the table per deal and the other having no significant impact vs. the market average / not using an advisor.

(1) "Do Independent Advisors Mitigate IPO Underpricing and Withdrawals in Europe?" Emmanuel Pezier (2019). Based on all IPOs on European exchanges January 2010 - July 2017 ($30m+). Link to study. Data set replicates that used for the October 2017 FCA study "Quid pro quo? What factors influence IPO allocations to investors?"

“A Picture Perfect Transaction.”

Company Executive on the €925m Ziggo Initial Public Offering, International Financing Review EMEA Equity Deal of the Year 2012

To find out more, Contact STJ Advisors

“Our independence and focus on transparency helps ensure that all parties are moving forwards together as one - issuer, vendor, investor and the banks - for a 'win-win' result”

* Source: Acquisition International

Expert advice to the most sophisticated issuers