Initial Public Offering (IPO)

First Asia acts as a sponsor and financial adviser to the companies seeking an IPO on the Main Board and GEM Board of the SEHK, NYSE and NASDAQ.

One of the most exciting though challenging experience a company may go through is that of going public. There are numerous advantages of listing a company – whether to raise new capital, improve financial leverage or enhancing corporate value and profile. Not only can the company’s potential and rate of return to shareholders be significantly increased through expansion, modernization and new acquisitions, going public can provide a vehicle for liquidity and potentially enormous financial rewards.

Advantages of Going Public

Capital

  • Improved financial condition
  • Public money does not have to be repaid

Globalization & Marketability

  • Access to capital markets worldwide
  • Enhanced company profile and prestige

Pricing

  • Shares traded daily at fair market value
  • Value of stock may increase remarkably after initial offering

Diversification

  • Through secondary offering of shares
  • Increased liquidity

The process of going public by listing on a recognized stock exchange may be complicated, especially for a PRC enterprise. First Asia can assist in this listing process to ensure a smooth transition from becoming a public company. From re-organizing the existing corporate, capital and management structures in preparation for registration with the relevant stock exchange and regulators, to ensuring that all documents will be properly filed, and to finding the appropriate underwriters to market the company shares, First Asia is committed to providing guidance and expertise in choosing the best alternatives available for its clients.

Due Diligence Process

Getting a company listed on recognized stock exchanges is a very much involved process. It will include careful due diligence reviews and appraisals, which will be critical to completing any successful IPO. The reviews and appraisals focus on key commercial, financial and regulatory concerns considered by regulators. First Asia works with clients closely on conducting due diligence to ensure that all of the key commercial, financial and regulatory issues have been addressed.

After completing the due diligence process, we would be best placed to discuss with the client and evaluate whether a public offering is the best option for raising capital, and whether the timing is right. If having a public offering is favourable to our client, we will:

  • Advise on capital market alternatives and fund raising possibilities
  • ntroduce our client to potential brokerage houses and strategic investors
  • Assist with presentations and negotiations with the strategic investors
  • ntroduce professional parties such as legal advisers, valuers, underwriters and
    accountants etc.
  • Manage the progress to make sure the various professionals involved are all
    working towards the same goal within the same timeline
  • Manage the project allowing the management to continue to focus on growing their business
  • Help evaluate which market and stock exchange should choose to raise funds in (e.g. the GEM Board and Main Board of SEHK, OTCBB or NASDAQ etc.)
  • Work with the management of the business to build a business plan and associated projections as well as initiating and carrying out business strategies is critical at the opportunity and possible funding structures

After completion of the IPO transaction, we would assist the client in complying with the rules and regulations of the relevant exchange, including ongoing reporting