What is a Prospectus? 

A Prospectus is a legal document that contains all the necessary disclosure requirements of a business, a joint venture, an investment opportunity or merger and acquisition project.

Why is a Prospectus required?

In the United States of America, the going public process requires the filing of a Prospectus or otherwise known as the Registration Statement (“Form S-1”) with

The United States Securities and Exchange Commission (“SEC”).  In British Commonwealth countries, raising capital from an Initial Public Offering (“IPO”) also require a Prospectus.  Subsequent public offerings also required the filing of a Prospectus.

Besides the use of a Prospectus for raising capital in public, a Prospectus is also used or applicable for:

  • Raising capital by way of private placement
  • Joint Venture
  • Merger and Acquisition (“M&A”)

Is it essential to have a Prospectus?

A comprehensive Prospectus provides an opportunity to attract investors and potential business partners to invest in the intended business, joint venture or M&A.  Transparency of the business coupled with the disclosure requirements is crucial to the success of going public, raising capital, joint venture or for the M&A.  A Prospectus prepared by professionals could probably help to materialise the desired objectives.

For more information contact hello@afssingapore.com

Categories: Public Company, IPO, SEC, Raising Capital, Joint Venture and M&A