Although it has significant advantages for the Company, the IPO process will involve costs that must be considered.<\/p>\n\n\n\n
The total direct cost of the operation varies greatly depending on the size of the fundraising, the market capitalisation of the Company, the context, and the choice of advisors. <\/p>\n\n\n\n
The direct costs comprise the fees due to the various advisors, including the Placement Financial Intermediary(ies), the Stock Market Operator and the Regulator, as well as marketing costs (road shows, media publications, etc.).<\/p>\n\n\n\n
Furthermore, indirect costs, such as internal structuring and management time dedicated to the IPO process should not be underestimated.<\/p>\n\n\n\n
Based on financial information available from Portuguese listed companies, the average total cost of an IPO tends to be within the range of 3% – 7% of the total amount of funds raised.<\/p>\n\n\n\n
Typically, the larger the offering, the higher the costs in absolute terms. Nevertheless, in relative terms, usually they represent a much smaller proportion of the value of the offer proceeds compared with small-sized offerings.<\/p>\n\n\n\n
The main direct costs of IPO process (not considering here the marketing costs) are as follows:<\/strong><\/p>\n\n\n