More good coverage of FNX15 Jan 2021 10:31
Another insightful new article here about the IPO:
Https://www.icaew.com/technical/corporate-finance/capital-markets/how-fonix-mobile-completed-an-aim-ipo-during-the-global-pandemic
Extracts:
"How was Fonix able to deliver its IPO so smoothly? Well, it certainly helped that the company is relatively resilient to the impact of COVID-19."
"“We did sit down in April and think about how COVID-19 might affect us, but we haven’t needed to change the forecasts we made at the beginning of the year,” explains Weisz. “We think we offer investors a proposition that straddles different needs: we pay dividends, which is attractive to income seekers, but we also offer significant long-term growth prospects.”
"the company’s data room was so complete and well organised that while investors naturally wanted to challenge the management team, they were reassured by its quality of preparation. “The key in any IPO is to under-promise and then over-deliver,” he says. “If anything, the scepticism was around whether they had under-clubbed in their forecasts.”
Chris Searle, a corporate finance partner at BDO, the reporting accountants on the IPO, agrees that Fonix’s scrupulously thorough preparation for due diligence was a key factor in its speedy listing. “When we set out on the process, the timeline looked very challenging,” he says. “Fortunately, this was one of the best organised companies I’ve worked with in terms of the timely provision of information.”
“The aim wasn’t to achieve a valuation that would prove impossible to live up to, because this is just a stage on the business’s growth plan.”
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