Equity capital markets are where companies raise funds by selling shares of ownership to investors. These markets let businesses sell part of their ownership to investors in exchange for money.
For companies looking to raise funds, the Equity capital markets offer several ways to do just that. Let’s explore the options:
Initial Public Offering (IPO):
An IPO marks a significant milestone for companies as they offer shares to the public for the first time. It’s like a grand opening where the company invites everyone to buy shares. This facilitates the company in raising the necessary capital for various financial needs, such as expansion, research and development, debt repayment, and other strategic initiatives, as numerous investors have the opportunity to purchase shares.
Follow-on Offerings:
After the IPO, your company might need more money to support further growth. In such cases, you can opt for follow-on offerings, issuing more shares to existing shareholders or new investors. This allows the company to expand its investor base and secure the capital needed for continued development.
Private Placements:
In instances where companies prefer a more selective approach to raise funds, they opt for private placements. Instead of selling shares to the public, they offer shares to a handpicked group of investors in a private sale. This streamlined process allows companies to raise funds quickly and efficiently while maintaining confidentiality and control over their shareholder base.
Rights Issues:
Right issues are typically applicable after an IPO or a follow-on offering. They provide existing shareholders with the opportunity to maintain or increase their ownership stake in the company by purchasing additional shares at a discounted price. This special offer not only enables companies to raise additional capital but also strengthens their relationship with current stakeholders, who have the chance to participate in the company’s growth while enjoying preferential pricing.
At Unicapital, Inc., we understand that the process of raising funds through equity capital markets can be overwhelming. That’s why we offer expert support every step of the way. Whether your company is considering an IPO, a follow-on offering, or another way to raise funds via equity, we can help you make the right choices for your business.
Raising funds through equity capital markets can fuel your company’s growth and help you achieve your financial goals. With Unicapital, by your side, you’ll have the guidance and expertise you need to succeed to navigate these markets effectively. Contact us today to discover how we can assist your company in securing the funds it requires.
Unicapital, Inc. is a full-service investment house licensed by the Philippine Securities and Exchange Commission to provide the widest array of finance and investment banking-related services.
