Welcome to IPO's Guide
 |
|
 |
|
 |
Ipo Initial Public Offering Article
This is a selection made from among articles on Ipo Initial Public Offering. For a permanent link to this article, or to bookmark it for future reading, click here.
Initial Public Offering Legal Requirements—Undergoing IPO is not as Easy as you Think
from:
Growth of their business is one thing that most investors want to happen during their tenure in the business industry. They want to see the operation of their business to grow and probably expand it to accommodate the needs of other potential clientele not just within the regional coverage but on the national or probably on the international coverage as well. Such growth in business operation alone already translates to huge revenues later on.
However, along with the sweet fruits of the growth of your operation, expect that you will incur additional expenditures resulting from such operation growth. You need to finance additional personnel who will handle the expanded operation as well as additional raw materials from your suppliers. In other words, once the growth is seen within the business operation, there is a need for you to sustain such growth by assuring that all additional expenditures will be met along the way.
Thus, you need additional funding to sustain your growing company. Additional capital must be raised to finance the expansion of business operation.
What will you do? Ask your financial advisers or even market experts, and they will just spell three significant words to you.
INITIAL PUBLIC OFFERING.
Also known as IPO, initial public offering is referred to as the first sale or issuance of a company’s common shares to the interested investors. Its main purpose is to raise additional capital or finances for the company through the distribution of their common shares to investors who want to purchase it. Take note that the term only applies to the first sale or issuance of a company’s common shares to the public. Any later issuance of shares will now be referred to as a secondary market offering.
IPO is considered to be an effective method of raising capital for a company. However, take note that the laws of a particular country where the IPO process will take place impose heavy legal requirements and compliances that every company going on public must met. In other words, undergoing an IPO process is not as easy as you think. You must be knowledgeable about the rules and regulations that you must comply with regarding IPO.
In the United States, the initial public offering is governed by the Federal Securities Act of 1993, together with the rules and regulation of the U.S. Securities and Exchange Commission. In addition, each exchange has their respective and separate rules that any company that will go on public must comply. For small companies that will undergo the IPO process, it may be affected by a certain state’s blue sky laws, though such laws may pre-empted by federal laws especially when the common shares are listed on major exchanges.
Before the IPO process jumps off, the issuer (the company that will sell its common shares to the public) must outline a prospectus. It will contain the overview of the company’s history, corporate background, products, operations, risk factors, and other essential information. The Securities and Exchange Commission will actively review the content of the prospectus and major law firms are involved in the drafting process.
Once the SEC approved the prospectus, the market value of the common shares will now be finalized and the IPO are now in the “free riding” stage wherein the shares will now be offered for sale on different methods, such as road shows, telephone calls, and institutional visits. All the offers must be accompanied by a copy of the prospectus.
The legal requirements are really heavy if your company will go on IPO. However, once such legal requirements have been complied with, expect that additional capital that you will use to sustain the growth of your business’ operation is within your reach.
Ipo Initial Public Offering Specific links
Ipo Initial Public Offering News
Decision on IPO likely in February - Gulf Times
VODAFONE is hopeful of making a statement on its proposed initial public offering next month. “I hope to have an answer for you next month,” Vodafone Qatar chief executive officer Grahame Maher said yesterday. Vodafone is awaiting Qatar Financial ...
Read more...PwC forecasts a more robust IPO market - South China Morning Post
Hong Kong's initial public offering market is set for another sluggish year but can improve if the mainland economy recovers, rekindling investor interest in new listings, PricewaterhouseCoopers (PwC) officials said yesterday. PwC forecast the amount ...
Read more...Mideast IPO activity slumps at end of 2008 - ArabianBusiness.com
TAKING STOCK: The number of IPOs and the amount of capital raised in Oct/Nov 2008 slumped, compared to the same period in 2007. (Getty Images) Initial public offering (IPO) activity in the Middle East has declined in the last two months amid the ...
Read more...Nakheel in talks over IPO - Saudi Gazette
Dubai – Palm island developer, Nakheel says it is considering selling shares to the public but didn’t say how soon, the company said in an e-mail statement Sunday. The state-owned company was responding to questions about a report in London’s ...
Read more...Nakheel: IPO possible, but not soon - MENAFN
(MENAFN - Khaleej Times) UAE's leading property developer, Nakheel said on Sunday that a reported $15 billion public issue was one of the options to raise capital, but may not be imminent. The state owned developer of Dubai's Palm Islands was ...
Read more...