A brief introduction to Regulation A+ IPOs
Regulation A+ is a relatively new but proven funding method that allows IPOs to be conducted to the NASDAQ and NYSE. With Regulation A+, companies can raise $75 million of capital per year by selling their shares to accredited and leading street investors. A Reg A+ IPO doesn't have a quiet period so that the offering can be promoted and investors can invest throughout the entire offering. Since leading street investors can support worldwide, small and mid-sized companies with excellent consumer appeal can gain access to a large amount of capital that otherwise might not be possible.
Another benefit is that a Reg A+ IPO is flexible and adjustable in many ways. For example, the company can decide the funding minimum, the minimum amount of investment per investor, the offering can be paused and restarted, and in some cases, even the share price can be changed. When the qualified offering has a zero minimum capital raise, the offering can be successful even if the company cannot raise sufficient capital to list on a major exchange.
Reg A+ IPOs on Manhattan Street Capital
Manhattan Street Capital is an online funding platform where companies can list their offerings. We support IPOs, Regulation A+ IPOs, Regulation D and Reg S offerings, Direct Listings, and Security Token Offerings (conducted under Reg A+ or Reg D).
The companies that intend to raise capital with one of these regulations can list their offering on our website to increase the success and cost-efficiency of their raise. We provide a very easy-to-use Invest Now system, which is a must in online fundraising.
We have launched our IPO Consulting Service. We help companies that retain us with project management and advice on reducing the cost, increasing their IPO effectiveness, and introducing client companies to the top service providers at every stage. We offer several other services that can be found on our Services page.
Costs for a Reg A+ IPO
The costs of a Regulation A+ IPO are significantly lower than for a conventional listing. Still, a lot can depend on the size of the offering and the companies' customer and fan base.
As a top-level view, costs for a completed offering should be expected at around 10% of capital raised with a broker-dealer and approximately 7% without one. (NOT charged as a percentage - we use % here as a guide only.)
Timeline for a Reg A+ IPO
A Regulation A+ IPO usually runs for three to four months after the Audit is completed. This period includes the SEC filings, marketing preparations, the live offering itself, and the actual listing on the exchange. The timeline will vary depending on the size of the offering and the company's consumer appeal, and on how well prepared the Form 1-A filing is before filing it with the SEC.
Related Content:
Cost of taking your company public using Regulation A+
How to do an IPO to the NASDAQ or NYSE via Regulation A+?
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Rod Turner
Rod Turner is the founder and CEO of Manhattan Street Capital, the #1 Growth Capital service for mature startups and mid-sized companies to raise capital using Regulation A+. Turner has played a vital role in building successful companies, including Symantec/Norton (SYMC), Ashton Tate, MicroPort, Knowledge Adventure, and more. He is an experienced investor who has built a Venture Capital business (Irvine Ventures) and has made angel and mezzanine investments in companies such as Bloom, Amyris (AMRS), Ask Jeeves, and eASIC.
RodTurner@ManhattanStreetCapital.com
www.ManhattanStreetCapital.com
Manhattan Street Capital, 5694 Mission Center Rd, Suite 602-468, San Diego, CA 92108.
