The Different Ways to do an IPO

If you want to go public, you might be curious about how to do so. First, there are a lot of benefits to taking your company public. You can raise a lot of capital quickly, you can improve your debt to income ratio, and you can provide stock options for employees, which could help you attract the top talent in your field. Furthermore, you can increase your company’s media exposure while increasing your leverage when you negotiate with vendors.

At the same time, you need to decide how to take your company public. There are several options available, and you should think about working with a professional transfer agent who can streamline the process for you. What are some of the paths for going public? Let’s take a closer look. 

 One of the first ways to take your company public is through an initial public offering, also called an IPO. This is arguably the most common way a company goes public. There is a detailed process you have to go through to take your company public, and the entire process usually takes a few months. You will hire a team of underwriters to take a look at the health of your company, and you will negotiate with them to figure out what share price you want to set and how many shares to offer. The process will be reviewed by the SEC through a registration statement filing, but your underwriters can handle a lot of the legwork for you. Some of the biggest companies to go public recently include Affirm, Billtrust, Poshmark, and Playtika. 

 If you want to shorten this process, you might be interested in a direct public offering. You can bypass the traditional underwriting process by offering existing investors’ shares for resale and trading. You can also offer new shares to increase the number of investors that can purchase shares in your company, and this could help you level the playing field. At the same time, without the research of the underwriting team, this process can be a bit riskier. A few companies that have gone for a direct public offering instead of a traditional IPO include Coinbase, Slack, and Spotify. 

 You can also take your company public through something called a reverse merger. In this case, you will take your private company public by merging with a company that has already gone public. In a lot of cases, this transaction is handled by a shell company or a special purpose acquisition company (SPAC). You can also take your company public more quickly because you don’t have to go through the IPO process. One notable example of a company that went public through a reverse merger is DraftKings. 

 If you want to go public, you should work with a transfer agent to get started. Colonial Stock Transfer is an IPO expert and transfer agent that can streamline the process for you. We will review your options and help you decide what is in the best interest of your company. 

The Different Ways to do an IPO
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