Initial Public Offerings

Initial Public Offering (IPO) - Raise Funds for Growth

A company can raise funds from public investors through an Initial Public Offering (IPO) to support its growth. When a private company reaches a certain stage and satisfies the listing requirements, it can go public by filing a preliminary prospectus and issuing an IPO.

Non-Offering Prospectus Listing - Cost-Effective Public Listing Option

If a company does not want to raise funds via a prospectus, it can opt for a Non-Offering Prospectus Listing to get publicly listed without incurring the cost and time associated with an IPO. This listing method does not involve an underwriter.

Alternative Public Listing Options in Canada

Other options for getting listed on a Canadian stock exchange include a Reverse Take-Over (RTO), the Capital Pool Company Program (CPC) of the TSX-V, or the Special Purpose Acquisition Corporation Program (SPAC) of the TSX.

Qualifying Securities without Offering New Securities

In a Non-Offering Prospectus Listing, the company qualifies the distribution of its securities without offering new securities. As most venture issuer financing is done through private placement, an IPO may not be necessary for the company to go public.

Complete Public Listing Assistance

Our services include assisting with all aspects of a public listing, whether it is an IPO or Non-Offering Prospectus Listing. We work with securities regulators, stock exchanges, transfer agents, and company legal counsel to prepare and review the prospectus, exchange listing application, and other required documents.

Considerations and Requirements of a Public Listing

To get listed on the Toronto Stock Exchange (TSX), a company must have a well-established business and meet financial criteria based on its industry. On the other hand, the Toronto Venture Exchange (TSX-V) and the Canadian Securities Exchange (CSE) have more relaxed listing requirements, accommodating junior and early-stage issuers.

Components of a Successful Public Listing

To ensure a successful public listing, the following components are crucial:

• A detailed business plan to assist in marketing, preparing the prospectus, and getting stock exchange approval.

• An organizational and capital structure comparable to that of a typical public company, with no unusual characteristics that could interfere with marketing.

• Adequate representation of independent directors in the board composition and committees, conforming to corporate governance requirements.

Step-by-Step Guide to Public Listing

Here is a step-by-step guide to the public listing process:

• Engage underwriters and assemble the deal team (for IPO).

• Prepare and file a preliminary prospectus with securities regulators.

• Complete regulatory review of the preliminary prospectus.

• Apply for listing of the securities on an exchange.

• Complete detailed personal information forms for each material shareholder, officer, and director.

• Market the offering and obtain expressions of interest from potential purchasers (for IPO).

• Finalize the underwriting syndicate and form the selling group (for IPO).

• Finalize the price and terms of the offering and the underwriting agreement (for IPO).

• File and obtain a receipt for the final prospectus from securities regulators.

• Deliver the final prospectus to and obtain binding subscriptions for the securities from purchasers (for IPO).

• Close the offering and complete the listing on the exchange.