Choice between alternative routes to go public: backdoor listing versus IPO

Brown, PR; Ferguson, AC; Lam, P

Choice between alternative routes to go public: backdoor listing versus IPO

Brown, PR Ferguson, AC

Lam, P

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Publisher:: AFAANZ
Publication Type:: Conference Proceeding
Citation:: 2010 AFAANZ Conference Website Proceedings, 2010, NA pp. 1 - 38
Issue Date:: 2010-01

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Field	Value	Language
dc.contributor.author	Brown, PR	en_US
dc.contributor.author	Ferguson, AC https://orcid.org/0000-0003-0535-0643	en_US
dc.contributor.author	Lam, P https://orcid.org/0000-0001-5386-3705	en_US
dc.contributor.editor	Faff, R	en_US
dc.date	2010-07-04	en_US
dc.date.issued	2010-01	en_US
dc.identifier.citation	2010 AFAANZ Conference Website Proceedings, 2010, NA pp. 1 - 38	en_US
dc.identifier.uri	http://hdl.handle.net/10453/16684
dc.description.abstract	Going public is the dream of many private companies. It represents a major milestone in the development of a firm. The listing status brings a lot of advantages to a firm. Some of these advantages include (1) access to capital markets and lower cost of capital; (2) enhanced company reputation and profile; (3) providing liquidity for owners to cash out; and (4) use of stock to pay for acquisitions, among others. However, going public is also a costly process. The out-of-pocket costs for an IPO typically involve fees paid for investment banks, accountants, auditors, lawyers, other experts, underwriters and brokers. The IPO firm will also have to pay for the printing of a prospectus and listing fees and other compliance costs. Other hidden costs entail underpricing, more stringent disclosure and regulatory requirements and the time spent by senior management in preparing the company for public listing.	en_US
dc.publisher	AFAANZ	en_US
dc.relation.ispartof	2010 AFAANZ Conference Website Proceedings	en_US
dc.relation.ispartof	Accounting and Finance Association of Australia and New Zealand Conference	en_US
dc.title	Choice between alternative routes to go public: backdoor listing versus IPO	en_US
dc.type	Conference Proceeding
utslib.citation.volume	NA	en_US
utslib.location	Australia	en_US
utslib.location.activity	Christchurch, New Zealand	en_US
utslib.for	150201 Finance	en_US
dc.location.activity	Christchurch, New Zealand	en_US
pubs.embargo.period	Not known	en_US
pubs.organisational-group	/University of Technology Sydney
pubs.organisational-group	/University of Technology Sydney/Faculty of Business
pubs.organisational-group	/University of Technology Sydney/Faculty of Business/Accounting Discipline
utslib.copyright.status	open_access
pubs.consider-herdc	false	en_US
pubs.place-of-publication	Australia	en_US
pubs.start-date	2010-07-04	en_US
pubs.volume	NA	en_US

Abstract:

Going public is the dream of many private companies. It represents a major milestone in the development of a firm. The listing status brings a lot of advantages to a firm. Some of these advantages include (1) access to capital markets and lower cost of capital; (2) enhanced company reputation and profile; (3) providing liquidity for owners to cash out; and (4) use of stock to pay for acquisitions, among others. However, going public is also a costly process. The out-of-pocket costs for an IPO typically involve fees paid for investment banks, accountants, auditors, lawyers, other experts, underwriters and brokers. The IPO firm will also have to pay for the printing of a prospectus and listing fees and other compliance costs. Other hidden costs entail underpricing, more stringent disclosure and regulatory requirements and the time spent by senior management in preparing the company for public listing.

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10453/16684