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A Company after its IPO can raise, with less effort, additional equity capital through a secondary public offering (SPO, follow-on offering) for the purpose of raising capital for new projects or for recapitalising the Company.
Similarly, to the IPO process, an SPO is developed in the same 3 phases as an IPO, namely Planning, Preparation & Review, Offering & Placement.
A comprehensive timeline detailing main events during the process is presented here.
The SPO planning phase takes considerably less time and efforts when compared to an IPO. When planning for an SPO, the Company is already public and, therefore, it already has made all the efforts to change its corporate structure, processes, and systems to comply with all the obligation related with being public. Nonetheless, to assure success of the offer, companies still need to have an attractive equity story and a clear corporate strategy backing the decision to proceed with an SPO.
Even if the process is simpler than an IPO, your Company will have to assure all the obligations arising from the SPO are met, and for that it may need assistance of specialized advisors to assure the preparation of the offering documentation as well as to managing the marketing and sale of the Company’s shares to investors. For further information on the considerations that must be made before appointing advisers please see ‘3.1.1.1.3. Appointment of advisors’.
