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Our service enable clients to successfully become publicly traded in the United States via direct public offering, reverse merger or initial public offering.

Initial Public Offering Services

What is an Initial Public Offering?

An Initial Public Offering (“IPO”) is a transaction whereby an investment banking firm raises investment capital and takes a company public. Since investment bankers earn large fees based upon the amount of capital raised, they need to ensure there is significant public interest before they can represent a private company. Generally, only large or well known companies are able to attract the interest of investment bankers.

What are the advantages of an Initial Public Offering?

There are many advantages of an IPO, including but not limited to:

  • Significant access to investment capital;
  • Credibility as a result of the support of an investment banking firm;
  • Professional advice throughout the transaction;
  • Some stock price support after the private company is publicly listed;
  • Analyst coverage and research reports to help keep the public informed.

What are the disadvantages of an Initial Public Offering?

There are several disadvantages of an IPO, including but not limited to:

  • Dilution from investment banker pressure to price shares low so it is easier for them to raise capital;
  • Success is subject to the investment banker and market conditions;
  • Costs much more than a direct public offering and reverse merger transaction;
  • Significant requirements from management for meetings, conference calls and roadshows;

What are the costs of an Initial Public Offering?

An initial public offering has five major cost components:

  • Accounting fees
  • Legal fees
  • Professional adviser fees
  • Filing fees
  • Financing fees

Accounting fees, legal fees, professional adviser and filing fees are largely dependent on the size and complexity of each transaction. Generally, IPO fees will cost several hundred thousand dollars to much more than a million dollars. Financing fees are charged based on the amount of funding raised by the investment banking firm.

How can we help?

We plan and manage direct public offerings. We specialize in helping early-stage, small and medium size companies complete an initial public offering without an investment banking firm or a reverse merger. A direct public offering is generally the easiest and least expensive way to go public.

For more information about an Initial Public Offering, call 516-284-8679 or email us.

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