Before revealing all about what the above title pulls you towards landing on this article let us first know about “What is a public offering?” The sale of equity shares or other such financial instruments to more than 35 people to raise the capital is deemed to be the public offering. The public offering may take place to cover fund business expansion, operational shortfalls or make strategic investments. The securities or the financial instruments offered to the public may include assets that can be easily traded like bonds such as equity stakes, preferred or common stakes and many others. An investment underwriter frequently manages and facilitates public offerings.
What is Initial Public Offering?
When a private company sells its share for the first time to the public by issuing corporate stock, then it is referred to as Initial Public Offering (IPO). A private company transforms itself into a public company through this process. It is a direct deal between the buyer and the companies as the shares of the company are traded in the primary market when a company goes for an IPO.
Valuation of IPO
It is based on several factors such as:
- The trend of the market
- Stocks in demand
- The growth potential of the company
- The company’s organizational setup
- Quantity of shares to be sold in IPO
- Price of stock in similar companies in the same sector at present
IPO at Hong Kong
The hong kong initial public offerings are provided by the corporate Finance lawyers who are well experienced in all forms of public offerings and capital raising activities. They have lawyers who advise on the listing of companies and present wide-ranging services to different sponsors, stakeholders, applicants, and underwriters. They have experience of advising multinational companies, state-owned companies and private corporations engaged in various financial institutions such as industries and investment banks. Their IPO service offerings cover almost all stages of IPO and consist of:
- Establishing family trust
- Designing share incentive schemes
- Giving advise on the suitable listing
- Preparing listing documents
Mergers and Acquisition
The m&a law firm hong kong of Hong Kong also gives advises on different transactions including private and public mergers and acquisitions with the help of a thorough understanding of their customer’s needs of business and objectives.
They tend to provide integrated services to make sure that the negotiations and implementation of their transaction are smooth. Their award-winning lawyers work closely with professionals like tax accountants, internal control specialists, technology experts, and financial advisers to provide comprehensive services to the customers. They aim to cover public and private companies, fund formations, pre-IPO investments, and wide-ranging transaction types such as disposals, mergers, tender officers, auctions,etc.