Alternative Routes to Going Public: Initial Public Offering, De-SPAC or Direct Listing
Private companies go public for a variety of reasons, including:
- raising capital
- providing liquidity for existing owners
- establishing publicly traded currency for acquisitions
In this document we compare three routes to going public:
- an initial public offering (“IPO”)
- a merger with a special purpose acquisition company (“SPAC”), sometimes referred to as a “De-SPAC”
- a direct listing of shares on a national securities exchange
Each route to a publicly traded company presents different considerations, positive and negative, for the company and its shareholders. Download “Alternative Routes to Going Public” for a summary of each route, along with a discussion of the considerations for each.
This information is provided by Vinson & Elkins LLP for educational and informational purposes only and is not intended, nor should it be construed, as legal advice.