Many young and talented people want to start a business but lacked capital.  They often asked money from their parents or invite relatives or friends to participate in the intended business, but there is no guarantee the raising capital plan can achieve successfully.  Eventually, the intended business may not kick off.

Options are available for seed capital such as:

  • Go public and IPO
  • Venture Capital
  • Crowd Funding
  • Bank Borrowings

What is an IPO? IPO means Initial Public Offering.  It is the initial public offering of the Issuer’s securities to the public to raise capital for the business or proposed project.  The company or the Issuer (a term used in the capital market for the company that issues securities to the public to raise capital) must first become an approved public company, filed a Prospectus with a securities and exchange commission and sought approval for the IPO.

What are the Advantages of a Public Offering for raising capital?

  • No pledging of tangible assets or personal assets for raising capital
  • No repayment of the capital raised. It is not a loan
  • No interest payment. It is not a loan.
  • No limitation or restriction to the number of times for raising capital
  • Transparency, creditability, trust and shareholders’ support assured

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Categories: Public Company, IPO and OTC Markets