Q&As

What is the type and extent of due diligence required in an AIM or Main Market IPO and how long does it take to complete?

read titleRead full title
Copyright © 2025 LexisNexis
Published by a LexisNexis Corporate expert
Published on: 08 February 2018
imgtext

Written in partnership with Daniel Simons (Partner, Hogan Lovells International LLP) and Melissa Ratchev (Associate, Hogan Lovells International LLP). This Q&A considers the nature and extent of Due diligence required in an AIM or Main Market Initial public offering (IPO) and how long such due diligence takes to complete.

Why carry out due diligence on an applicant pursuing an AIM or Main Market IPO?

The due diligence exercise is a critical part of the IPO process. It requires a full investigation by the company and its advisers into the company's business, finances, prospects and risks in order to provide the necessary information in the offering document (that is, a prospectus where there is an offer to the public or for an admission of securities to trading on the Main Market, or an admission document for an admission of securities to trading on AIM) which will be distributed to potential investors. Sufficient due diligence can lead to a defence of

Powered by Lexis+®
Jurisdiction(s):
United Kingdom
Key definition:
Due diligence definition
What does Due diligence mean?

Due diligence means that all reasonable precautions were taken and all due diligence was exercised to avoid the commission of the offence. This requires the defendant to produce evidence of the system and procedures it has devised in an effort to avoid unfair practices.

Read more readmore

Popular documents

What is a retail offer in the context of an IPO or secondary offer?

What is a retail offer in the context of an IPO or secondary offer?A retail investor is an individual investor who buys and sells shares for their own account. Retail investors typically invest in small amounts of shares and trade infrequently. A retail investor can be distinguished from an

Underwriting

UnderwritingThis Practice Note looks at the underwriting of an offer of shares by a public limited company, including how an underwriting is documented, the company's power to pay the underwriter's commission, sub-underwriting and standby underwriting.Where a public limited company is making an

Class 1 transactions—fundamentals

Class 1 transactions—fundamentalsSTOP PRESS—Impact of the Retained EU Law (Revocation and Reform) Act 2023: This document contains references to retained EU law (REUL) and associated terms introduced by the European Union (Withdrawal) Act 2018 in connection with Brexit. From 1 January 2024, REUL

SAS 72 comfort letters in international securities offerings for non-US lawyers

SAS 72 comfort letters in international securities offerings for non-US lawyersThe underwriters or initial purchasers in an international securities offering will customarily require that the issuer's accountants provide one or more comfort letters relating to financial information contained in the