The first time a private company offers its shares to investors is called an initial public offering (IPO). It starts with a public equity offering, which is the sale of shares of your business to the public. This type of offering is usually handled by an experienced investment banking firm licensed by the Securities & Exchange Commission for the underwriting and disposal of those shares.
Argus Stockbrokers Ltd can consult you for pursuing an IPO. This enables you to carefully consider some of the advantages and disadvantages of taking your company public:
An IPO can help your company:
Raise capital for growth, research and development; to build or expand facilities; to diversify operations; to retire debt, etc.
Create personal liquidity for owners - increase public awareness and prestige of your company
Improve net worth by enabling you to borrow on more favorable terms
Provide attractive incentives for employees, such as stock options
Keep in mind, however, that going public:
Requires public disclosure of financial and operational information
Often results in loss of autonomy in management decisions
Can have substantial costs, including accounting and legal fees and expenses associated with shareholder relations
ARGUS services are limited to consulting on capital structure, drafting of prospectus and other business activity related to IPO, and shall not include underwriting or disposal of IPO shares.
Is your company eligible for IPO?