Choosing Sponsors and Underwriters: Selection Beyond League Tables

The standard approach to selecting IPO sponsors — look at the league tables and hire the bank that has done the most deals in your sector — is insufficient. A more complete selection framework evaluates: Sector Expertise — does the bank’s research team have analysts who genuinely understand your business model and can articulate your growth story to investors? Regulatory Track Record — how many of the bank’s recent IPOs received HKEX comment letters, and how long did it take to resolve them? Aftermarket Support — does the bank have a track record of providing post-IPO research coverage and market-making support? Team Continuity — will the senior banker who pitches the deal actually be on the execution team, or will the work be delegated to junior bankers after the mandate is won? Cultural Fit — is the bank’s working style (intensity, communication, problem-solving) compatible with the company’s management culture? The beauty parade process should include reference calls with CEOs and CFOs of the bank’s recent IPO clients — not just the successful ones, but companies where the IPO process encountered difficulties, to understand how the bank performed under pressure.