Skip to main content

How to successfully manage IPO process


IPO Process

The process of taking a company public requires a significant amount of work and knowledge of the reverse merger or IPO process. The assistance of a top team including an experienced securities lawyer is also mandatory for a successful outcome. Mina Mar Group not only manages the entire process, but also provides a competent and proven team of internal & external staff and resources. The Mina Mar Group turnkey process starts with your decision to go public and ends with your company acquiring a ticker symbol and raising capital. Mina Mar Group doesn’t just take you public. We engage stock distribution and investor relations firms to ensure that the offering is distributed far and wide, in order to raise the most capital at the best price for your company.

Going Public – The Process

1.Internal company agreement to go public
Management will present the concept of going public to the Board of Directors so they may consider the option. Included in this presentation should be financials, projections, operating responsibilities, staffing, marketing, technology, intellectual property and other documentation to ensure that the board can make an adequate decision. Once the board approves the idea of going public, the next step is to assemble the right team. At Mina Mar Group, we assemble the entire team for you. We will deploy a securities attorney as well as recommend an accounting firm in order to audit your company’s financials. The company’s financial statements should be carefully reviewed and to ensure they comply with Generally Accepted Accounting Principles (GAAP). The accounting firm assists with the review of the financial statements and the making of appropriate adjustments.
2. Mina Mar Group Agreement.
Your company will then formalize its arrangement with Mina Mar Group which will outline Mina Mar Group’s plans, timelines, process, fees, the size of the offering, the price ranges and other parameters. In addition, decisions at this point will be made as to whether or not the company will be merged into a blank checks shell, or will use an alternative method such as a Direct Public Offering (DPO).
3. Drafting the Prospectus
After the letter of intent is signed, Mina Mar Group, in combination with our securities lawyers and your accountants, will begin preparing the prospectus. The prospectus is a written document prepared for investors as a legal disclosure document. The prospectus is required to contain the following information: 


1. Audited financial statements

2. Business description
3. Management structure
4. The company's capitalization
5. Management compensation
6. Transactions between the company and management
7. Shareholdings of principal shareholders
8. Intended use of the proceeds of the offering
9. Disclosure and discussion of the company's operations and financial condition
10. The effect of dilution on existing shares
11. The company's dividend policy
12. The underwriting agreement


4. Draft
Mina Mar Group attorneys, analysts and other staff will draft the narrative part of the prospectus and your accountants will prepare the financial statements.
5. Due Diligence
Mina Mar Group and your accountants will perform due diligence of the company. We will examine the company's management, business objectives, operations, competitive position, financial condition, performance, and plan. Information regarding the company's vendors, customers, and industry are also part of the review process. The prospectus will change as more information is revealed.
6. Presentation to the SEC
MMG will file and present the preliminary prospectus to the SEC. It is likely that within a few weeks, the SEC will return with comments including additional requirements, disclosure or further clarification.
7. SEC Approval
Once the prospectus has been revised in accordance with the comments of the SEC and the appropriate stock market, the SEC will declare the registration effective, the company can “go to print” with the prospectus.
8. FINRA Filings and Compliance
RPI will work with our stock transfer agent to submit form 15(c)211 in order to pass FINRA compliance. We will continue to work with FINRA until all of their questions and comments are answered and your firm has been accepted.
9. Syndication
After the preliminary prospectus has been prepared and filed with the SEC, RPI will assemble a "syndicate" consisting of other investment relations firms, stock distribution firms and other companies who will attempt to market and sell portions of the offering to investors.
10. Road show
Our investor relations firms will arrange multiple meetings with potential investors and analysts. The road show is a formal presentation of the company’s operations, financial condition, products or services, performance, and markets. During the road show, investors and analysts will ask questions of the firm in order to determine whether or not they will invest.
11. Pricing and Offering Size
On the day before the registration becomes effective and sale commences the offering is priced. Mina Mar Group will recommend a price taking into account all aspects of the company including investor demand, the amount of capital required, performance, the stock price of competitive companies, the success of the road show, and general market and industry conditions. Mina Mar Group will also consult with the company regarding the size of the offering, and the desired control over the corporation.
Labels:
Location: West Palm Beach, FL, USA

Comments

Post a Comment

Popular posts from this blog

OTC stocks more difficult to trade and deposit

  Mina Mar Group helps micro-cap companies structure their growth. Micro-capitalized companies are those with less than $50,000,000 in equity, sometimes under $1,000,000. Restructuring involves raising money (both debt and stock), and planning how they will eventually harvest that wealth. If you’re a founder or investor, the secret to harvesting your equity is to possess assets with a developed market for their sale; up until recently, that market was the public market. Now, Over-The-Counter Securities (“OTC Securities”) don’t serve that purpose since, unless you’re a tech unicorn doing an IPO, there are essentially no ways to sell the shares you’ve invested in. OTC securities – how they were deposited five years ago. Brokerages all around the country have tightened compliance over the past five years to the point where no one may deposit share certificates into their brokerage accounts, even if they can prove that they paid for them. Consider the following demand from a secondary brok
Post a Comment
Read more

S1 Registration

A Form S1 represents the opening registration that a US firm must submit with the SEC prior to an Initial Public Offering. The Securities Act requires a registration statement, otherwise known as Securities and Exchange Commission Form S1, previous to security can be issued on a public exchange such as the NASDAQ, NYSE, or other exchanges. Foreign corporations can register with the SEC, but they must do so using the SEC Form F1. Corporations must fill out Form S1 to outline their intended use of capital proceeds, a description of their current business strategy and competition, and a brief prospectus for the new security, including offering pricing mechanism and any other dilution to other listed stocks.  The SEC also mandates that any material business conducted between the corporations and its directors and external counsel be disclosed. Investors can access S1 filings online in order to do due diligence on new offers before they go public.  As a result, businesses can use the SEC’s
Post a Comment
Read more

Foreign Companies

Lately, we are getting many inquiries about dual listing or to list foreign companies either through IPO or RTO on OTCmarket. What are the benefits for foreign companies to be listed on OTC markets and how they can do that?  Is it an easy procedure, and what are the conditions? What is the main reason for companies that are listed on qualified foreign exchanges to trade on OTC markets? We are here to cater to your questions by providing you with the right answers. The first thing we need to start with is that this market is a global market. Only that fact gives you countless opportunities. To be listed on Wall Street which represents a vital center of global finance, for early-stage growth companies, and having access to US investors can bring a significant competitive advantage. It is appropriate for small businesses due to its regulatory structure, which gives better transparency and accessibility to a bigger pool of less risk-averse and more active investors. This is important for s
Post a Comment
Read more