An IPO (Initial Public Offering) is primarily the first stock sale that your company issues to the public. It’s usually referred to as going public. Many companies complete the process by filing a 1-A, F-1, or S-1 with the SEC (Securities & Exchange Commission) and raise capital using an underwriter that is simultaneous to their listing on major stock exchanges, such as the NYSE or NASDAQ. While private companies do forfeit some of its benefits by going public, an IPO also helps companies raise larger amounts of capital.
Going public gives investors more liquidity options and can also create new opportunities for acquisitions and mergers that didn’t exist when you were a private company. Along with such, your IPO ensures that you can advertise your shares to a more diverse investor group, which can also increase liquidity, lead to better opportunities for networking, and provide better financing options. All of these benefits can help your company grow faster.
Why Hire a Professional
However, completing the IPO is challenging and can take many months. If this is something you are considering, it is best to hire an IPO transfer agent. These agents can help with a variety of needs, including custody and appointments, paying agents, sharing distribution, data management, closing call support, and other necessities.
Once you’ve got a transfer agent on call, it might be best to use them for other services, such as being your preferred stock transfer agency. In this capacity, the agent can help you maintain records, keep track of stock certificates, and much more.
Along with such, you can turn to them for advice whenever you need extra help. The agent can also work with your current legal team to go through all the complicated logistics and securities laws regarding your IPO, such as meeting with investors and bankers, and closing calls. For more information visit EquityTrack.
