There are several ways to become part of a public-listed company. The different paths to becoming part of a public-listed company are subject to differing regulations, and naturally benefits and costs may vary.
Unity Group will consider various factors when choosing the right path for your business.
Three types of paths
Initial Public Offering ("IPO")
An IPO is the first time shares of a private company are launched on a stock market and offered for public trading. IPOs are generally used by companies who are seeking capital to grow, but they can also be used by larger private companies. The shares of the private company are commonly initially sold to institutions and then onto the public market
Special Purpose Acquisition Company ("SPAC")
A SPAC is an investment vehicle that has no operations or assets, that lists publicly on stock market with the intention of merging with or acquiring additional companies using funds raised through the IPO. Unity Group then seeks out value-added businesses to acquire post listing.
Reverse Takeover ("RTO")
An RTO is a merger private companies can use to become publicly traded without having to prepare for an IPO. An RTO occurs when a public company issues so much of its own stock as consideration for the purchase of a private company that the private company's shareholders end up controlling the majority of outstanding stock in the combined company. The private company effectively becomes a public traded company and the initial company can decide to be an active or inactive member from that point forward.