Welcome to IPO's Guide
Initial Public Offering Date Article
. For a permanent link to this article, or to bookmark it for further reading, click here.
Initial Public Offering of Shares—Is it the Best Option for your Corporate Organization?
from:
Going public or not?
That is one question that pops out of the minds of different corporate directors and executives of growing companies. The consistent growth of their operation translates to revenues. In order to maintain the flow of revenues, different corporate directors and executives must sustain the growth of the company by infusing additional investment.
Securing a corporate loan is a good idea, but undergoing an initial public offering is probably the best idea that corporate directors and executives can arrive into. Why get the company into debt when the company’s assets such as common shares could be used to raise additional capital that will sustain the company’s continuous growth?
IPO or initial public offering is the first or initial sale of a company’s common shares to the public, which is why it is also referred to “going public”. The most convincing reason why many companies are going public is because it is the most convenient and probably the safest way to raise capital that will be used to sustain operational expenditures.
However, there are still some “strings attached” to this process. Though it’s other reasons such as easy access to much needed capital, increased employee compensation and liquidity due to additional funding, prestige, and publicity are compelling, there are still pointers that you must consider when deciding if initial public offering is the right option of for you to take.
Remember what happened to Netscape when it went public in April 1994? They became the prestigious computer application company that rose above its competitor, with its actual market value reaching $1 billion. However, the executives lost control of the company and even the company itself, which resulted to the selling of the company’s interest to America On Line (AOL). Many investors think that they can capitalize from the revenues generated through IPO, and yet what happened is that the company itself suffered.
Before getting into an IPO process, make sure that your company is “sexy enough” for investors. In other words, your marketing ideas (the industry and the products or services that you offer to the public) are extremely popular to the consumer, which makes it very appealing to the investors. That is why IPO is not ideal for starting and not-well known companies because the risk of losing any infused investment due to unpopularity of its marketing ideas is present. Better assess your marketing ideas first before jumping into IPO.
Do you really understand why you are going into public? You must look the revenues that will be generated on IPO as an “emergency fund” and not as a “luxurious fund”. If the company’s present financial bucket could still sustain the growth of the company and the presence of an explosive growth needs to be seen, there is no reason to go in public. It will just create little benefits to the executives as well as to the future shareholders.
Do you have the necessary funds that you will spend when going public? Keep in mind that there are corresponding expenditures in each stage along the process. For instance, you must have a well-established business plan in order to answer the disclosure document questions, which is an essential part in convincing investors with regards to the viability of your IPO. Creating a well-established business plan alone will cost you as much as $20,000.
Is the initial public offering the best option that you can choose? It requires careful assessment and evaluation of various factors. Do not be attracted by fame and publicity—it can easily kill you.
Initial Public Offering Date Specific links
Initial Public Offering Date News
Groupon investors watch closely as firm posts first results as public company - The Guardian
 The Guardian | Groupon investors watch closely as firm posts first results as public company The Guardian Google offered $6bn for the firm in December 2010, but Andrew Mason, the company's founder, rejected it. Last November the firm went public in the biggest, most hyped initial public offering (IPO) since Google. It's now valued at $15bn but, ... At a loss |
PWER: The Real Winner of Facebook's $5-Billion Payday - Investment U
 International Business Times | PWER: The Real Winner of Facebook's $5-Billion Payday Investment U Matt Weinschenk covered an intriguing aspect of Facebook's IPO that nobody else is really talking about. I hope you enjoy.] Now that Facebook has filed for the largest internet IPO in history, all anyone can talk about is what valuation the social ... Facebook IPO Will Boost 1%, But the Rest of Us Won't Be Sharing How can I get a piece of the Facebook action? Facebook's 99%: Later employees may pay almost double the tax rate that early ... |
Moody's Puts Caesars On Review For Upgrade; IPO On Track - Wall Street Journal
Moody's Puts Caesars On Review For Upgrade; IPO On Track Wall Street Journal A proposal to amend Caesars' borrowing would give existing lenders the option to extend the maturity date of loans or convert existing revolving commitments into term loans. Caesars Entertainment is expected to price its initial public offering on ... |
How going public might change Facebook - The Asset
How going public might change Facebook The Asset After much public interest and speculation, Facebook filed for its initial public offering (IPO) on February 1. Once it goes public, its responsibility as a profit-earning company will increase, and so will the scrutiny from its investors. |
Social Media Stocks: All Hype, No Profit? - NASDAQ
 Technorati | Social Media Stocks: All Hype, No Profit? NASDAQ To date, none of the hype has translated into any profits for everyday investors. And I don't expect that track record to improve any time soon. Aside from Facebook's IPO filing, the next biggest news in the social media space of late is that ... Zynga and LinkedIn -- Social Media Stocks on the Upswing as Facebook Files IPO Twitter Could Go Public In 2013, But Why Bother? Facebook's IPO Filing Pushes Zynga's Stock Prices Higher and Higher |