Business Analysis · Business Strategy

How can I offer Public share in New York Stock Exchange if my company is a Australia based start up?

Anonymous

April 25th, 2017

Hi there,

As many of the biggest tech companies are traded in New York Stock Exchange, I would like like mine to be there too.

My company is a Australia start up , how can i make that happen. I want it to be recognized as American Company

Please suggest a plan or strategy.

Should I or Can open a New company in US ?


Hoping for a positive reply

thank you

William Swiggart Attorney for technology and biotech companies

April 25th, 2017

The NASDAQ stock exchange would be more typical for a start-up. Their stringent listing quirements can be seen at https://listingcenter.nasdaq.com/assets/initialguide.pdf. If you don't want the delay of meeting those through an IPO, a reverse merger is the way to go, either into a public shell or by acquiring a listed company that is not a shell.

Henry FRSA Managing Director, Positive Profile Limited

April 25th, 2017

The other answers provide excellent alternatives - but to answer your question directly, you don't need to create a new US company, many foreign companies list themselves on the New York Exchange - see how here: https://www.nyse.com/get-started


Good luck!


Kind regards,

Henry

Jonathan C. Dunsmoor Founder of Law Office of Jonathan C. Dunsmoor

April 25th, 2017

Excellent question! It's not as simple as it looks. Startups generally do not "just go public" but, instead, it requires a lot of time and effort from the company regulators (in this example the U.S. Securities and Exchange Commission; "SEC"), and sometimes investment banks, depending on the offering. If you would like to do an "Initial Public Offering" (IPO) those are normally reserved for larger "startups" that have several million dollars to spend on lawyers, accountants, and regulatory filings. Alternatively, a "Direct Public Offering" (DPO) is much less costly and put you on an Over the Counter Exchange (OTC Market). These transactions cost an where from 50k to 250k depending on the size and scale of the company. If you are interested in either of these two options, I highly recommend you find a law firm that is well-versed in these procedures because they can cost you dearly in the long run.


Also, if you want to be recognized as an American company, you can find a firm to create a local C-Corporation or LLC, depending on your operations, and start doing business in the United States. This is often the first step for most international ventures who come here.


Best of luck on whatever decision you choose!


The foregoing discussion does not establish an attorney-client relationship, is qualified by the limited facts presented above, and should not be relied upon as legal advice. To obtain definitive legal advice upon which one can rely necessitates retaining an attorney who is qualified in this particular area of the law.

Aubrey Logan-Holland I can operate a small business in a major way

April 25th, 2017

You can set up a USA subsidiary, list on the ASX & list on the NYSE.

Walter Flicker Developer of medical device companies.

April 25th, 2017

Anonymous, You have to have $50M+ sales and preferably some profits to list on the NYSE. Also, it’s hugely expensive. List on the ASX first and transfer later to NYSE when you are firmly established.

Joanan Hernandez CEO & Founder at Mollejuo

April 25th, 2017

The method is called ADR. However, this is the wrong place to ask. I'm certain that any Australian financial advisor has better information on how to do it than any of us. The plan or strategy should come from them because this is an Australian company, for sure they know how to proceed.


In case you're wondering, there's no web page for this. IPOs are complex processes. Most "start-ups" do this late in their game, after they become big corporations and business, not initially.


Best of lucks!

Hunter Ashmore

April 25th, 2017

If you do not need financing in the process, then look into a reverse merger. This is where your company acquires an existing public "shell" company and merges with it. The pros and cons are pretty well described here: http://www.investopedia.com/articles/stocks/09/introduction-reverse-mergers.asp


If you need to raise funds in the process, then an APO (Alternative Public Offering) is a combination of a reverse merger at the same time as a PIPE (private investment in public equity).


I would stress, however, that there are costs that come with going public. The satisfaction of being recognized as an American company my not be enough to counter the additional annual reporting required to of publicly traded companies.