Regulation A+ IPO
"An IPO is like a coming-of-age party. You invite all your friends, put on your best clothes, and hope to impress the grown-ups."
Regulation A+ is a type of Initial Public Offering (IPO) that allows companies to raise up to $75 million in capital from both accredited and non-accredited investors, under the SEC's Regulation A. It is also known as a mini-IPO. Here is an overview of the process of doing a Regulation A+ IPO in the United States:
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Preparation: The company will need to prepare a detailed offering statement, which includes financial and other information about the company and the offering. The company will also need to engage a securities lawyer and investment banker to assist in the process.
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Filing with the SEC: The company will file the offering statement with the SEC, along with any required exhibits and financial statements. The SEC will review the filing and provide comments and feedback.
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Qualification: Once the offering statement is deemed qualified by the SEC, the company will be able to begin offering and selling securities to investors.
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Marketing and Promotion: The company can begin to market and promote the offering to investors, using a variety of methods such as social media, email campaigns, and roadshows.
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Closing: Once the offering has closed, the company will need to file a final offering statement with the SEC, along with a report on the offering.
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Ongoing reporting requirements: Companies that conduct a Regulation A+ offering will be required to file periodic reports with the SEC, such as Form 1-K, Form 1-SA, and Form 1-U as well as following the rules set by the state where they are incorporated.
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Listing: Companies that conduct a Regulation A+ offering are not required to list their shares on a national securities exchange, but they can do so if they choose to.
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Estimated Cost: US $350,000-600,000
