An initial public offering (IPO) occurs when a privately owned company lists its shares on a stock exchange, making them available for trading by the public. Referred to as “going public,” the IPO process is a large undertaking for companies and requires significant filings and financial disclosures to meet SEC requirements.
In addition to their startup attorneys, companies will typically engage the services of capital markets attorneys and investment bankers to assist with the IPO process. Investment bankers will assist with marketing, gauging demand for, establishing the price for and the date for the issuance.
Going public provides huge publicity and a chance to raise significant capital. It also allows early investors in the company to gain liquidity in their investment. After companies go public, they may also obtain better terms when seeking debt financing given their increased transparency. Once a company goes public, however, increased regulatory requirements, financial analyst coverage, shareholder matters and other areas create large costs which companies will have to bear.
As always, should you have any questions about anything contained within this Insight, don’t hesitate to get in touch with us via call, text or e-mail using the contact details listed in our site footer, or via the form below.
Disclaimer: Please note that the information provided in this blog post does not, and is not intended to, constitute legal advice. Rather, all of the information, content, and materials available on this and every other page of our website is made available by us for general informational purposes only. The information in this post or anywhere else on this website may not constitute the most up-to-date legal or other information, and should not be relied upon for making any decision, acting, or refraining from acting. All liability on the part of Chatterjee Legal, P.C. and any and all of its attorneys and/or other professionals with respect to decisions made, actions taken or actions not taken based on the contents of this blog post, this page, or this website is hereby expressly disclaimed. The contents of this blog post, this page and this website are provided on an “as is” basis, and no representations are made that such content is free from errors. Our content contained within this post or elsewhere on our website may link to websites, content or other resources belonging to third parties. We present these links only for convenience purposes, and we make no representations or warranties of any kind with respect to any such third-party websites, content or other resources. Access to and/or use of this blog post, this page, or this website does not create an attorney-client relationship between you and Chatterjee Legal, P.C. or any of its attorneys or other professionals.