Private Company Listing Services as Means of Raising Funds

Private Company Listing Services as Means of Raising Funds

Avail Private Company Listing Services To Raise More Capital Today

Availing of private company listing services can help you raise more capital for your business. This can be done through initial public offering (IPO) or the first round of selling of shares of a private company.

Undergoing IPO effectively turns a private company into a public one given that outside investors have now ownership in the business. It is called “listing” because the company will be listed with the stock exchange after the public offering.

This process usually takes months and even years to accomplish given that many procedures are needed to be done. Here are the things you must do to launch an IPO.

  1. Choosing Your Underwriter: You must tap an investment bank to do the underwriting services for your initial public offering. This bank is working alongside your company all the way through. It is also the one helping your company in determining the initial price offer of your shares. Take note that underwriting an IPO can be expensive; and it takes time. But choosing a great investment bank is must to ensure the success of your public offering.
  1. Due Diligence: This is deemed as the longest portion of the IPO process because of tons of paperwork. Your underwriters are tasked with doing this one, so do not worry too much. The issuing company, at this time, is mandated to register with the Securities and Exchange Commission as well.
  1. Marketing of Your Public Offering: With your paperwork settled, you need to have a roadshow to conduct the sales pitch of your IPO. Both the underwriter and issuing company visit various locations to present their IPO, which can then help them determine the demand. Based on the investor appetite, the underwriting firm can estimate how much shares the issuing company can offer.
  1. Setting the IPO Price: The SEC greenlighting the IPO means that the underwriter and issuing company can set the price, date, and number of shares. The price usually hinges on the value of the company, which can be determined through a valuation process. Apart from the company itself, the underwriting firm also investigates the current status of the economy. Usually, an IPO is underpriced to attract investors. The price will potentially rise later as traders buy these underpriced shares.
  1. Going Public: After settling everything, the private company will go public on the date of the initial public offering. Market watchers are always observing this kind of event as this can dictate their trading tactics in the future. They would want to know if the shares of the issuing company can be profitable after all.
  1. IPO Stabilization: This the 25-day window when the underwriter can influence the share price movement. The underwriter ensures that the stocks have an ideal share price. This can be done through Green shoe option or having lock-up period.

On Your Own

After the IPO stabilization period, the underwriter and investors are now observing the performance of the shares at the stock market.

At this stage, the underwriting firm can compute the company’s earnings from the transaction and conduct a post-IPO valuation. The underwriter at this point will transition to be an advisor.

Do you need advice for private company listing services? Do not hesitate to reach out to 3E Accounting for Business Advisory Pte Ltd. They have the best team ready to serve you.