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IPO Guidance

An initial public offering refers to the process of offering shares of a private corporation to the public in a new stock issuance. Public share issuance allows a company to raise capital from public investors.

When is an IPO appropriate?
 
  • We are a fast growing company in an industry that enjoys great popularity and do not want to lose ownership and management control of the company
  • We want to continue participating in the development of the company and it would be difficult for us to agree on a strategy with a financial or strategic investor
  • We want to expand / acquire companies for which our company's own resources are not sufficient and we do not want to significantly indebt the company
  • We do not consider selling the majority of the company in the future, but we do not oppose a partial sale
  • We want to explore other possibilities of financing our growth beyond loans and other debt products
  • We would like to use the proceeds from IPO to focus on other segments, we expect to hand over the company to our children
  • We want to show that our company can go through such a complex process as an IPO
 
When not?
 
  • Bank financing is unavailable to us, banks are not willing to continue financing our company
  • Our industry is in recession and the prospects are not positive
  • We are not keen on reporting any financial indicators outside the company, we are careful not to put any unnecessary information in the company register
  • We will now sell 30% of our company through the stock market and sell the rest of the company in the medium term to a strategic or financial investor
  • Our company does not have a clear organizational structure and reporting & control mechanisms in place

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