Initial Public Offers

Taking the right steps during the Equity and Debt Offering process:

The excitement surrounding an initial or other public offering is matched by the challenge of preparing and filing the financial documents related to the offering. A filing team must first gather and analyze information. The draft prospectus submission is then circulated among the team of attorneys, investment bankers and accountants who will make certain the disclosure adheres to mandated requirements of the Securities and Exchange Commission (SEC).
While the task is complicated, the exacting detail required around disclosure can be intimidating for those unfamiliar with the process. Document management mistakes in particular can slow or stall the process. What would working with a global leader in transaction documentation and workflow do for you?

Selecting Fidelity Finance Company Limited to manage the documents for an initial or secondary offering of equity or debt allows the offering team to concentrate on its areas of expertise without worrying about the details surrounding filing, printing and distribution.

Because our professionals have an average of over ten years experience working at all levels of the process, they bring an array of tools, services and real world experiences that speed each step, reduce errors and eliminate repetitive work without sacrificing accuracy or cost-effectiveness.

We guide our clients through the IPO process. We help them create, produce and distribute required information through the correct channels. In summary, we are able to manage the process so clients and their advisors can pay attention to their strategic plan while addressing the new challenges unfolding for their organization.

Details about Initial & Secondary Offering:

What It Is:

A secondary offering refers to a large-scale market sale of a company's shares by a major shareholder.

How It Works/Example:

Also called a secondary distribution, a secondary offering is distinguished from an initial public offering Dior IPO) in that the proceeds generated by the sale of the shares goes to the shareholder rather than the issuing company. The selling shareholder originally paid for the shares in return for the equity. In the case of a secondary offering, the shareholder is simply reselling the shares in the market. In this sense, he is recouping the money he originally paid the issuing company in return for the shares.
For example, suppose Bob fully owns half of the total number of outstanding shares of company XYZ. Bob originally purchased these from XYZ at the time of their IPO. The proceeds generated from that IPO went to XYZ as the issuer. Bob now decides, however, that it would be beneficial for him to sell all of his XYZ shares in the market. This sale constitutes a secondary offering; because it is the second time those shares have been offered for sale in the market. The money he makes from the sale of his XYZ shares benefits him as well as the previous owner.

Why it Matters:

The distinction between a secondary offering and an IPO must be understood beyond a simple transfer of stock ownership. The aim of ownership transfer in an IPO is to raise capital funding for the issuing company. A secondary offering simply transfers ownership between investors in the market place. In this sense, it is important to note that secondary offerings, while benefiting selling shareholders, do not financially benefit the issuing company.
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