CapialStrategic IPO Advisory

Going public is a challenging, time-consuming process that’s difficult for most companies to navigate alone. A private company planning an IPO needs not only to prepare itself for an exponential increase in public scrutiny, but it also has to file a ton of paperwork and financial disclosures to meet the requirements of the Securities and Exchange Commission (SPK), which oversees public companies.

"That’s why a private company that plans to go public hires Golden Trophy Capital  as an IPO advisors to consult on the IPO and help it to shop the best deal for the Shareholders."

Why You Should Consider Going Public: Think of an IPO as the end of one stage in a company’s life-cycle and the beginning of another—many of the original investors want to sell their stakes in a new venture or a start-up. Alternatively, investors in more established private companies that are going public also may want the opportunity to sell some or all of their shares.

Advantages of Going Public 

1. Raising Capital:  As the name suggests, a private company finances its operations through private funds – i.e. funds from its shareholders, investors, venture capitalists, etc. However, based on the sector and performance of the company, it can reach a stage where it needs a huge infusion of capital to expand, scale-up operations, or various other reasons.
2. Liquidity for Existing Shareholders:  Imagine a company with four shareholders. They invest money in equal proportion and work hard to establish and grow the business. Five years later, the company is doing well and one investor decides to cash in on his investment. While the shareholders can divide the profits, they cannot monetize the fame and goodwill of the company without going public. Once the company’s stocks are listed on the exchange, the price moves based on the general investor’s perception of the company’s performance. 
3. Improves the Credibility of the Company: If a company is listed on a stock exchange, then you can be assured of a few things like the transparency of financial data since SPK asks all companies to report it periodically, better management, etc. Hence, once a company goes public, its credibility usually improves.
4. Helps Assess the Company’s Market Worth: When a stock is listed on the exchange, it is worth only what an investor is willing to pay for it. Hence, it provides an insight into the company’s market worth. A company that has a good market worth can attract good talent and better options for acquisitions and/or mergers.
5. Gives Greater Market visibility: When a company launches an IPO, it garners attention from the public. People who have never heard about the company but invest in the stock markets start researching it and assessing its financials. This helps it gain market exposure.