Through a joint effort with our strategic broker-dealer partners HFG offers select clients an alternative to the IPO. Utilizing our APO process HFG assists private companies in going public by simultaneously completing an APO transaction with a private placement of equity capital.
The net result for the private company is similar to a company completing an IPO, in that upon the completion of the APO process it is a publicly listed company with newly raised equity capital, institutional investor support and investment bank sponsorship. The APO services are designed to offer our clients the benefits of the IPO while mitigating against its risk. Highlights and advantages of HFG’s APO services include:
- Becoming a public company and raising capital in one transaction
- Regulatory filings occur after the financing and going public event are completed, thus avoiding IPO-related risks
- Investment bank acts as placement agent, bringing post-closing market sponsorship
- Market validation through institutional financing
- Much faster and less risk than an IPO
- Higher valuations than raising money as a private company
- Flexibility in amount of capital that is raised, with a long term process and strategy (including post closing) to minimize issuer dilution
The APO process also works for a company that wants the benefits of being public without the need to immediately raise capital.
APO Valuation Spectrum
Investors in an APO will pay a premium to private equity valuations, but expect a discount from projected public market valuations.