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I am a company director.

2007-05-31 18:18:09 · 5 answers · asked by 23yearOldm 2 in Business & Finance Investing

5 answers

You need to convince an investment banker to back your company and file all the necessary documents to take your company public.

The Initial Public Offering (IPO) for a new public company is the first opportunity for the investing public to be able to purchase shares in the company. An IPO is a very exciting time for the company, and IPOs are often eagerly anticipated by the investing public as well.

There are several reasons for which a private company may wish to become a public company. The two biggest reasons are to raise capital and to allow the original investors or entrepreneurs who started the company to realize profits on their investment and time. A private company is one in which investment or ownership is limited to select individuals or organizations. A public company is one in which anyone can invest and obtain ownership by purchasing shares on a publicly traded exchange.

Undertaking an IPO is a large and exciting event for a new company. A well received IPO means that the company will have cash to further its development and growth. It also usually means that the people who started the company realize some significant profits for their efforts.

An IPO requires a great deal of work, from filing the necessary paperwork with the regulatory bodies and writing a prospectus for potential investors to devising and implementing a sales campaign for the sale of the initial shares. Since the company also needs to continue to function and complete its normal activities, a financial firm is usually hired to do this work. This firm is referred to as the underwriting firm for the IPO. For a really large IPO, the work may even be split between several underwriting firms.

By the way, as the company director, you should know that you cannot make others buy your shares.
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2007-05-31 18:42:19 · answer #1 · answered by SWH 6 · 0 0

Basically you wish to LIST your company on a stock exchange. For that your comapany has to be a public ltd co. You would have to hire a SEBI registered merchant banker to complete the formalities. Your company has to fulfill eligibility criterion laid down in "Disclosure & Investor Protection Guidlines" of SEBI.

2007-06-01 01:52:16 · answer #2 · answered by kg 1 · 0 0

You need to do :

Appoint a merchant banker. The firm will undertake to do everything related to IPO and subsequent listing on the stock exchange.

There is a lot of legwork to be done with SEBI, stock exchange, bankers, brokers, advertisers et al. The merchant banker will do this. As it is a merchant banker must be appointed as per SEBI norms.

I wish you all the best.

2007-06-01 02:19:15 · answer #3 · answered by Nitin G 7 · 0 0

It's not easy ...

First make sure your business as is now is capable of making money and that you can convince your future investors that it can. Then seek the help of investment bankers.

Main reason why you need to have it listed is you need capital to expand (not to sell your shares), because as is, the business can't handle the possible orders it can have. This has to be supported with facts.

2007-06-04 21:50:06 · answer #4 · answered by siagnon 3 · 0 0

you can contact one of the brokers in your area. if the fundamental of your company is good, i think many people would interested.

2007-06-01 03:25:28 · answer #5 · answered by Anonymous · 0 0

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