Going Public…
These notes are produced to assist in understanding the process of becoming a publicly traded company in the United States. They should be read very carefully in conjunction with the US-Float file showing the USF 7 Steps to Listing in the US. All public listing processes can change from company to company, depending on size of company, the point at which the investors take up the equity in the company, the speed of US audit and of course the US regulatory authorities.
USF provides legal, financial and investor relations partners to companies all over the world that wish to raise funds through being a public company in the US.
The securities markets in the US are highly regulated, with high levels of investor protection, but with the opportunity for sound, fast-growth companies to open the door to substantial funding.
PRIVATE or PUBLIC?
There are a high number of privately owned companies that have the desire to grow, both organically and via making strategic acquisitions. In order to grow, these companies need access to working and investment capital. In most cases, investors are reluctant to invest in private companies because of the uncertainty over a viable exit strategy for their investment and being unable to realise their investment for a long period of time.
Why should a company consider going public?
Before a company decides to attempt to become a public company in the US, it needs to ask itself why it wants to be a public company and if it is capable of achieving, and mantaining its status as a public company. |
