ALIGNING RISK PROFILE WITH THE INSURANCE PROGRAM

CHALLENGE

After making the decision to list their telecommunication company on the ASX, our client had little time to spare between investor roadshows and getting their business prepared to completely focus on the insurance implications of the float.

Listing a privately owned company on a stock exchange requires a significant amount of work from various advisors and stakeholders; all of which are vying for the Board’s time and input.

Selling the company to potential investors carries significant risks which generally lie squarely on the shoulders of the Board and executive management, often leaving them personally exposed to shareholder class actions.

SOLUTION

With McCullough Robertson advising the Board and the Due Diligence committee on the IPO including the over-arching corporate risk framework, Allegiant IRS was able to efficiently structure a Directors & Officers and Prospectus Liability insurance program providing a critical defence mechanism for the companies directors against the inherent risks associated with taking a private company public.

Our key objectives through this engagement were to:

• work seamlessly with McCullough Robertson off the back of their advice with no disruption to the client
• design an insurance program that covered the directors ongoing core obligations, while addressing the specific requirements of the Prospectus risk profile, and
• deliver the Directors & Officers and Prospectus Liability insurance
  program in advance of the listing date.

BENEFITS

By having the authority to work with McR directly, we were able to discuss and anticipate the challenges of the insurance placement and deal with them immediately without having to go back and forth with the client and their advisors.

We were ecstatic that Allegiant IRS were able to secure cover for the prospectus liability when on an earlier IPO our then insurance brokers couldn’t. Knowing that McCullough Robertson and Allegiant were working together on the insurance piece of the transaction covered the gaps in our eyes.