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Initial Public Offering Data Article
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Initial Public Offering of Shares—Is it the Best Option for your Corporate Organization?
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Going public or not?
That is one question that pops out of the minds of different corporate directors and executives of growing companies. The consistent growth of their operation translates to revenues. In order to maintain the flow of revenues, different corporate directors and executives must sustain the growth of the company by infusing additional investment.
Securing a corporate loan is a good idea, but undergoing an initial public offering is probably the best idea that corporate directors and executives can arrive into. Why get the company into debt when the company’s assets such as common shares could be used to raise additional capital that will sustain the company’s continuous growth?
IPO or initial public offering is the first or initial sale of a company’s common shares to the public, which is why it is also referred to “going public”. The most convincing reason why many companies are going public is because it is the most convenient and probably the safest way to raise capital that will be used to sustain operational expenditures.
However, there are still some “strings attached” to this process. Though it’s other reasons such as easy access to much needed capital, increased employee compensation and liquidity due to additional funding, prestige, and publicity are compelling, there are still pointers that you must consider when deciding if initial public offering is the right option of for you to take.
Remember what happened to Netscape when it went public in April 1994? They became the prestigious computer application company that rose above its competitor, with its actual market value reaching $1 billion. However, the executives lost control of the company and even the company itself, which resulted to the selling of the company’s interest to America On Line (AOL). Many investors think that they can capitalize from the revenues generated through IPO, and yet what happened is that the company itself suffered.
Before getting into an IPO process, make sure that your company is “sexy enough” for investors. In other words, your marketing ideas (the industry and the products or services that you offer to the public) are extremely popular to the consumer, which makes it very appealing to the investors. That is why IPO is not ideal for starting and not-well known companies because the risk of losing any infused investment due to unpopularity of its marketing ideas is present. Better assess your marketing ideas first before jumping into IPO.
Do you really understand why you are going into public? You must look the revenues that will be generated on IPO as an “emergency fund” and not as a “luxurious fund”. If the company’s present financial bucket could still sustain the growth of the company and the presence of an explosive growth needs to be seen, there is no reason to go in public. It will just create little benefits to the executives as well as to the future shareholders.
Do you have the necessary funds that you will spend when going public? Keep in mind that there are corresponding expenditures in each stage along the process. For instance, you must have a well-established business plan in order to answer the disclosure document questions, which is an essential part in convincing investors with regards to the viability of your IPO. Creating a well-established business plan alone will cost you as much as $20,000.
Is the initial public offering the best option that you can choose? It requires careful assessment and evaluation of various factors. Do not be attracted by fame and publicity—it can easily kill you.
Initial Public Offering Data Specific links
Initial Public Offering Data News
IPO VIEW-End of one IPO drought, start of new one? - Reuters
NEW YORK, Nov 21 (Reuters) - This week's initial public offering by Grand Canyon Education Inc (LOPE.O: Quote , Profile , Research , Stock Buzz ) broke the longest streak without an IPO in the United States since 1974, but it is not likely to open ...
Read more...Amulet up for sale, a year after moving to Rockville - Washington Business Journal
CEO Craig Liddell says because the atmosphere for landing venture capital is dismal, Amulet Pharmaceuticals will get more money by selling itself. Last year, Amulet Pharmaceuticals Inc. made a much-heralded move from Baltimore to Rockville, a coup ...
Read more...UPDATE 2-Target rejects Pershing's real estate proposal - Forbes
NEW YORK, Nov 21 (Reuters) - Target Corp (nyse: TGT - news - people ) on Friday rejected as 'highly speculative' proposals made by hedge fund manager William Ackman that he said would unlock the value of its real estate and boost the discount ...
Read more...Safaricom looking at corporate bond market - CFO - Forbes
BARCELONA, Nov 21 (Reuters) - Kenya's biggest mobile phone firm Safaricom is considering raising cash through a bond issue, its Chief Financial Officer Les Baillie said on Friday. Baillie did not say how much the group could be seeking, nor the use ...
Read more...Argentine Stocks Fall as Biggest Shareholders Seized (Update5) - Bloomberg
Nov. 21 (Bloomberg) -- Argentine stocks fell and the Merval posted the biggest weekly decline among global markets as the state seizure of the nation’s biggest shareholders undermined investor confidence and threatened to spur an equity sell-off ...
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