IPO/SPAC/De-SPAC

IPO (Initial Public Offering)

One of the first steps in the IPO process is to file the Form S-1 with the Securities and Exchange Commission. Sometimes informally referred to as the “registration form,” the S-1 is the initial registration required by the SEC when a company offers new securities for sale to the public on a national exchange. The S-1 contains detailed information about the company’s business model, peer comparisons, planned use of proceeds, underwriters’ pricing methodology and other important data.

SPAC (Special Purchase Acquisition Company) and De-SPAC

Another vehicle for taking a company public is the SPAC, which stands for Special Purchase Acquisition Company. A SPAC is a publicly traded entity, sometimes thought of as a “blank check company,” formed by a group of sponsors, typically with strong backgrounds in a specific sector or industry. The SPAC’s purpose is to raise capital through an IPO, with proceeds being used to acquire or merge with an existing, privately held company, bringing it public. The SPAC offers certain advantages over a traditional IPO. For example, a SPAC can result in a public offering after only a few months, while the traditional IPO process can take up to a year or more.

A De-SPAC transaction happens when one or more private companies agree to be acquired by a SPAC. The acquisition must first be approved by the SPAC’s shareholders. Once the merger is complete, the resulting entity is then reorganized and the original target company becomes the operating business which has access to the SPAC’s funds.

Filing Experts You Can Trust

Whether you are considering an IPO or a SPAC, we would love to hear from you. RDG’s team of EDGAR and XBRL filing experts can show you the way to hassle-free document conversion and filing on EDGAR, using our easy-to-use Thunderdome filing software.

With over 4 decades of subject-level expertise and experience in having filed thousands of documents with the SEC, RDG is here for you when you take that first step toward going public. RDG offers best-in-class service coupled with cutting edge technology to help our clients fulfill their SEC compliance requirements as they grow. To get started, contact us here.