Getting your IPO out there - advertising an IPO

The initial public offering (IPO) market is in full swing with many private equity houses looking for a timely exit from investments. Advertising can play a key role in the success of an IPO. So, it's important to note that there are limitations on the right to advertise an IPO. Below we provide a snapshot of what advertising an unlisted issuer can, and cannot, undertake.

General and specific advertising

The rules relating to advertising in connection with an IPO fall into two categories:

• general advertising to the world at large, with different rules applying before a prospectus is lodged and after a prospectus is lodged; and
• advertising to specific groups.

Importantly, the advertising restrictions not only apply to direct advertising of an IPO, but also to "image advertising." That is advertising that does not explicitly refer to the offer but is reasonably likely to induce people to apply for the securities. For example, image advertising may