IPO expenses likely to ease further this year, say industry players

Investment banking and legal fees, advertisement and marketing, listing fees and brokerage, and selling commission are the typical cost heads incurred by a company for an IPO

The money companies have to spend on going public saw a marginal decline during 2019-20 over the previous financial year. Investment banking and legal fees, advertisement and marketing, listing fees and brokerage, and selling commission are the typical cost heads incurred by a company for an initial public offering (IPO). 

An analysis done by KPMG shows 14 companies spent an average 4.9 per cent of their issue size in FY20, lower than 5.3 per cent spent by 17 companies in the previous year. There are a number of factors that influence issue expense. Bigger the issue size, smaller the expense. 

The KPMG