How Hexcellence can Help You with US IPO Consultation
Taking your company public in the U.S. Capital Markets is a transformative milestone, offering access to one of the world’s most dynamic and liquid capital markets. However, navigating the complex regulatory landscape and financial requirements of US IPO can be daunting without the right expertise. That’s where Hexcellence Consulting comes in.
We specialise in guiding businesses through every stage of the IPO journey—from preliminary feasibility assessments to post-listing compliance. Whether you’re seeking to expand your global footprint, attract a diverse pool of investors, or boost your company’s valuation, Hexcellence has the expertise to help you make a seamless and strategically sound transition to a publicly listed.
Hexcellence’s Expertise in US IPO Advisory
We provide our clients with valuable advice on planning, implementing, strategising, and executing every step of the IPO process, from group restructuring to successfully being listed in the U.S. Capital Markets, namely the NYSE, Nasdaq, and OTC Markets.
As part of our US IPO advisory consultancy, we offer guidance in:
- Preliminary feasibility assessment
- Assisting in the selection of professional service providers
- Establishing key committees
- Corporate governance
- Prospectus / Registration Statement drafting
- Advising on underwriter selection
- Strategic IPO execution
- Handling communications with regulatory bodies
- SEC reporting
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Why U.S. Capital Markets
IPO in the US or overseas can offer several strategic advantages to companies. Listing abroad can provide greater stability for companies based in countries with limited or volatile capital markets. This can support long-term growth ambitions and diversify investor risk.
Here are key reasons why companies may choose to IPO in the US or overseas:
- A broader pool of international investors
- Greater liquid capital market
- Elevates global visibility and credibility
- Establishes stronger regulatory frameworks
- More favourable company valuation compared to domestic markets
Financial requirements to be Listed on Nasdaq
| Requirements | Equity Standard | Market Value of Listed Securiities Standard | Net Income Standard |
|---|---|---|---|
| NASDAQ Listing Rule | 5505(a) & 5505(b)(1) | 5505(a) & 5505(b)(2) | 5505(a) & 5505(b)(3) |
| Stockholders’ Equity | US$ 5million | US$ 4million | US$ 5million |
| Market Value of Listed Securities | — | US$ 50million | — |
| Net Income from Continuing Operations In the latest fiscal year, or; | — | — | US$ 750,000 |
| in two of the last three fiscal years | — | — | US$ 750,000 |
| Liquidity Requirement | |||
| Unrestricted Publicly Held Shares | 1 million | 1 million | 1 million |
| Unrestricted Round Lot Shareholders | 300 | 300 | 300 |
| Market Value Of Unrestricted Publicly Held Shares | US$ 15 million | US$ 15 million | US$ 15 million |
| Market Makers | 3 | 3 | 3 |
| Bid Price, or; | US$ 4.00 | US$ 4.00 | US$ 4.00 |
| Closing Price | US$ 3.00 | US$ 2.00 | US$ 3.00 |
Steps to be Listed in US
As US IPO advisory consultants, here are the steps taken to be listed publicly in US:
Preparation Phase (T0-T3):
- Initial discussions and due diligence.
- Assessment of listing feasibility and requirements.
Execution Phase (T4-T18):
- Engaging professional service providers.
- Preparing documentation and application as needed.
- Drafting and submitting the registration statement to the SEC.
- Responding to regulatory queries.
- Finalising underwriting arrangements and preparing for the IPO roadshow.
Post-Listing:
- Advising ongoing reporting and compliance as a public listed company.
What is the Listing Cost Range
For example, for a small issuer( market cap below USD 100 million) to be publicly listed on Nasdaq, here is the range of cost calculation in USD:
Professional Fees:
- Securities Counsel: $300,000 – $350,000.
- PCAOB Auditor: $150,000 to $250,000.
- Underwriter Fees: Ranges from $150,000, with underwriting commissions between 6.5% and 9.5% of the IPO funds raised.
- US GAAP Consultant: $35,000 to $70,000.
- Market Research and Valuation: Each at $20,000.
- Hexcellence Consulting Service fees (Will quote upon completing feasibility test)
Registration and Listing Fees:
- SEC Registration Fee: $10,000.
- FINRA Registration Fee: $10,000.
- NASDAQ Listing Fee: $77,000.
Total Estimated Listing Cost:
- $2.4 million to $2.5 million, excluding underwriting commissions..
For more information about our IPO consultation services and fees, contact us here or at +60 11 5636 6286 for our assistance.
FAQ
Why do companies choose to go public?
Companies go public to raise capital, gain greater visibility, and allow early investors and founders to realize their investments.
How long is the process to be publicly listed in the U.S. Capital Markets?
Being publicly listed overseas can take up to 18 months, which is over a year.
What are the advantages of engaging Hexcellence Consulting’s IPO advisory ?
While hiring professional IPO consultants like Hexcellence Consulting’s team is necessary during the IPO process, they also offer other advantages, such as:
- Allow you to focus on your company’s daily operations and its shareholders throughout your IPO process
- Get expert advice on how to streamline your US IPO process
- Help with preparing IPO process documentation
- Provide post-IPO support and maintenance services
How does an IPO advisory service help you through the IPO process?
An IPO advisory service will help you through the IPO process by providing expert advice on regulatory compliance, financial structuring, market positioning, and investor relations. This ensures a smoother transition to a publicly traded company and maximises valuation.
When should you hire an IPO advisory service?
If your company is considering going publicly listed overseas, the best time to hire an IPO advisory service is 18 to 24 months in advance to ensure a smooth process.