Introduction
Iqoniko is an experienced capital markets expert and supports entrepreneurs on their journey to the stock market – from the initial idea to a successful trading launch. What makes it special is that Iqoniko serves clients from a wide range of industries – from the communications industry, medtech and fintech, to IT and modern fish farming. How does this diversity come about? Mathias Puchta, Managing Partner of Hidden Champions Equity Research, speaks today with Dave Persico, Managing Partner at Iqoniko, about the process of an IPO, who it is suitable for, who the typical client is, how long the process takes, and what costs to expect.
Mathias Puchta: Mr. Persico, welcome to Hidden Champions. Let’s get started. Your client list includes companies from the communications industry, medtech, fintech, IT – and even modern fish farming. How does this diversity come about?
Dave Persico: That’s because we don’t limit ourselves to a single industry, but focus on the quality and growth potential of our clients. Whether high-tech or sustainable food production, an IPO follows the same basic principles everywhere: a compelling equity story, solid company figures, and a clear plan for the future. Our clients meet these criteria, regardless of whether they develop software or operate fish farms.
Mathias Puchta: How does an IPO typically proceed?
Dave Persico: We always start with a feasibility study to determine whether the company is ready for listing. We then develop a clear strategy with the issuer: selecting the listing venue, legal and regulatory preparation, and developing the equity story. This is followed by due diligence, the preparation of the IPO prospectus, and investor engagement, often via a capital roadshow. Finally, we accompany the listing day and also handle investor relations afterward – because the IPO is the beginning, not the end of the journey.
Mathias Puchta: Let’s assume I’m an IT company based in Munich, looking for capital for expansion or product launch, and I contact you. What happens then?
Dave Persico: Then we’ll look at your business case together, assess whether you’re ready for the capital market and whether your current corporate structure is even suitable – a kind of due diligence. If not, we’ll help and support the company in positioning itself accordingly so that the next step is to proceed with the listing. We accompany the company throughout the entire process up to the initial listing.
Mathias Puchta: Who is an IPO suitable for?
Dave Persico: For companies that are profitable or clearly growth-oriented, have a comprehensible business model, and have already achieved a certain level of maturity in the market. We work with both medium-sized market leaders and fast-growing innovators. The key is that an IPO is viewed as a growth boost – not as a lifeline.
Mathias Puchta: Who is your typical customer?
Dave Persico: Many of our customers are so-called hidden champions – leaders in their niche, but not necessarily well-known. These companies use the stock market to raise fresh capital for expansion, research and development, or acquisitions – while simultaneously increasing their visibility.
Mathias Puchta: How long does such a process take?
Dave Persico: Typically six to nine months – depending on the company’s size, internal preparations, and the requirements of the chosen stock exchange. Some processes can be accelerated, but due diligence always takes precedence over speed.
Mathias Puchta: A listing or IPO like this certainly costs a lot. What specific costs will the company face? A mid-six-figure sum?
Dave Persico: Yes, that’s what many people think. But let me tell you, it’s much more affordable – at least with us. The costs depend heavily on the complexity and market requirements. Factors include the chosen stock exchange, the scope of prospectus preparation, legal and audit costs, and marketing activities.
For a listing, i.e., inclusion in the so-called over-the-counter market, the costs are typically between €35,000 and €45,000.
In addition, there are external costs such as securitization of the shares, which is a typical banking service, and the corresponding listing fee – together in the range of €15,000 to €18,000.
In other words: With us, you can get a listing in just a few weeks for as little as €50,000 to €60,000 – without a prospectus. We disclose the cost structure from the outset and ensure that the added value of the IPO significantly exceeds the investment.
We offer a prospectus or securities prospectus starting at €30,000.
Hidden Champions: I believe that by now, at the very latest, many entrepreneurs will be considering an IPO to raise capital. Especially because it doesn’t require millions of dollars to bring their own company to the stock market. We’ve already reached the end of this. Thank you, Mr. Persico, for the fascinating insights into your work. We’re excited to see which company you’ll successfully accompany to the stock market next.
