Initial Public Offerings (IPO’s) combine a NYSE or NASDAQ listing with a public offering of new shares to raise capital.
IPO’s have several advantages versus all other methods of listing. The largest advantage is that the company starts trading with several brokerage firms helping to assist the after-market liquidity in the trading market. In all other methods of listing, the company has significantly more work to do to get its trading market developed and get analyst coverage.
Millennium assists companies with all aspects of IPO preparation including needs assessment, due diligence preparation, deal documents, engagement of needed professionals including auditor, legal, IR/PR, and underwriters/placement agents.
After IPO, Millennium advises management on factors that influence aftermarket performance, including growth strategy, M&A and financings. The firm provides its management teams with advice on any requested topic.
The main disadvantage of the IPO method is that combining the listing with a public offering subjects the listing itself to contemporary market risks. If the general market or the company’s specific sector turns negative or even neutral before the IPO is completed, the IPO often will fail. This condition has resulted in a large number of NonUS companies going public by merging with a SPAC and doing a simultaneous private placement.
Three historic Listings, Three different methods
MIllennium client Chinadtocom completed the most oversubscribed IPO in Lehman Brothers history. Six months later Chinadotcom did a secondary public offering with Goldman Sachs, raising an additional $500,000,000. This was followed by twin $100M IPO’s in Hong Kong and Taiwan for subsidiaries HongKong. com and Taiwan.com
MIllennium client CMGE completed one the first ever direct listings on NASDAQ, through a a registered spin-off. CMGE was a subsidiary of a HK listed company and the spinoff enabled the wide shareholder base required for direct listing. After climbing from an initial listing price of $8/share, Millennium assisted CMGE go private at $22/share to pursue a PRC stock market listing.
MIllennium client Geely Auto completed a listing on the HK stock exchange by doing a reverse merger into a shell company. Geely is also listed in the US on the OTC market with an ADR, trading under the symbol GELYY. As Geely’s preIPO advisor, Millennium positioned Geely as “Toyota for China.” Today Geely has is fullfilling that vision with a wide line including EVs.
MILLENNIUM representatives around the world are seeking to identify high growth companies for US Public listing. Help us find you by contacting us today!
SPAC MERGER
Merging with a NASDAQ or NYSE SPAC offers an alternative method for listing, reducing risk and listing complexity.
US PUBLIC Listing
US public listings can dramatically increase valuation while providing capital and shareholder liquidity.
ABOUT
Millennium is an equity based sponsor and corporate finance advisor with a long history in public listings.