An Initial Public Offering (IPO) is the first sale of stocks issued by a company to the public. Prior to an IPO, a company is considered a private company, usually with a small number of investors (founders, friends, families, and business investors such as venture capitalists or angel investors). When a company goes through an IPO, the general public is able to buy shares and own a portion of the company for the first time. An IPO is often referred to as “going public” and the underwriting process is typically lead by an investment bank
Reasons Why Companies Go Through an IPO
Companies that are looking to grow often use an Initial Public Offering to raise capital. The biggest advantage of an IPO is the additional capital raised. The capital raised can be used to buy additional property, plant and equipment (PPE), fund research and development (R&D), expand, or pay off existing debt. There is also an increased awareness of a company through an IPO, which typically generates a wave of potential customers.
In addition, private investors/founding partners/venture capitalists can use an IPO as an exit strategy. A public offering is one of the most common ways venture capitalists make a significant amount of money.
The top reason to go public… to raise money!
INITIAL PUBLIC OFFERING (IPO)/REVERSE TAKEOVER (RTO) CONSULTING
We assist clients in assessing whether their company meets the qualitative and quantitative requirements of listing on the Stock Exchange.
We also assist the company with putting together a listing plan and timeline, gathering a professional team comprising of sponsors, lawyers, accountants and other advisors to support the Company’s reverse takeover (RTO) process.
With our professional team, we can help your company project manage the whole IPO or RTO process.
If you are unsure whether taking up IPO or RTO is more beneficial for you and your company, our team can assist you with breaking down the timeline and provide financial advise to better strategize your business.