The IPO (Initial Public Offering) is considered the first stock sale that you provide to the public. It is usually referred to as going public. Many businesses file a variety of forms with the SEC, such as S-1, 1-A, or F-1, and then raise capital using an underwriter while listing themselves on a large exchange, such as the NYSE or NASDAQ. While private companies do forfeit some of the benefits of using an IPO, you raise more money when you go public.
Once you’re considered public, your company can give your investors more options for liquidity. It can also open more opportunities for acquisitions and mergers that you couldn’t claim as a private business. Completing your IPO also ensures that you can advertise shares to more investors, which increases liquidity, leads to more networking options, and provides more financing features. Completing the initial public offering is a difficult process that can take months. It is imperative that you have an IPO transfer agent that can help.
If you choose an IPO transfer agent who is also a stock transfer company, they already have a good standing with the Security Exchange Commission. Look for companies without any SEC complaints. They are going to provide the best service possible and use the latest technology to make sure your IPO goes well.
They can also guide you to help you through all the complex laws. Their legal counsel is available to you through them and can help with logistics, such as meeting with investors and closing calls. Along with such, they make sure you obtain your DRS/DWAC/FAST status, as well as get DTC eligibility.
You should also focus on an agent or company that offers flat rates instead of charging you each time you use a particular service, which saves you money. Visit Colonial Stock Transfer for more information.