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Financial Advisor for IPO Projects

In today's dynamic financial landscape, navigating the complexities of an Initial Public Offering (IPO) requires expert guidance and strategic planning. As a dedicated financial advisor for IPO projects, Topleap Financial specialize in providing comprehensive support throughout the entire listing process. Our team brings deep industry knowledge, ensuring compliance with regulatory requirements. 

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Why IPO?

Enhanced Visibility and Reputation

Going public significantly boosts a company's brand awareness and reputation. The IPO process attracts considerable media attention and investor interest, which helps spotlight the company’s capabilities and market position.

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Continued Access to Capital Markets

An IPO provides ongoing access to capital, enabling companies to raise further funds through secondary offerings or debt financing. This financial flexibility supports future initiatives such as product development, geographic expansion, and strategic investments.

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Valuation Benchmark

The IPO process involves rigorous financial assessments that establish a company’s market value. This valuation not only serves as a benchmark for future fundraising efforts but also allows the company to use its publicly traded shares as currency for potential acquisitions or partnerships.

 

Liquidity for Shareholders

An IPO offers liquidity options for existing shareholders, allowing them to realize gains from their investments. This can enhance employee morale and retention through stock options and equity incentives.

 

Strategic Growth Opportunities

Being a publicly traded company opens doors to strategic partnerships, mergers, and acquisitions, facilitating long-term growth and sustainability.

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Requirements of US IPO

1. Equity standards

  • Shareholder's equity: US$5 million

  • Issuance of unrestricted shares: US$15 million

  • Lowest stock price: US$4

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2. Market value standards for listed securities 

  • Shareholder's equity: US$4 million

  • Issuance of unrestricted shares: US$15 million

  • Market Value: US$50 million

  • Lowest stock price: US$4

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3. Net profit standards

  • Shareholder's equity: US$4 million

  • Issuance of unrestricted shares: US$5 million

  • Net operating profit: $750,000

  • Lowest stock price: US$4

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Requirements of HK IPO

To list on the main board, applicants are required to have a business track record of no less than three fiscal years and meet at least one of the following tests: 

1. Profit test

  • market value at the time of listing ≥ HK$500 million

  • shareholders' profit attributable for the most recent year ≥ HK$35 million

  • ​accumulated shareholders' profit attributable for the past two years ≥ HK$45 million

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2. Market capitalization/revenue test

  • market value at the time of listing ≥ HK$4 billion 

  • ​audited earnings of the most recent fiscal year ≥ HK$500 million

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3.  Market capitalization/revenue/cash flow test

  • market value at the time of listing ≥ HK$2 billion 

  • ​audited earnings of the most recent fiscal year ≥ HK$500 million 

  • cash inflows for the past three fiscal years ≥ HK$100 million 

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IPO timeline

01.

Pre IPO Assistance

02.

Helping with listing materials 

03.

Public offering and opening

04.

Post listing and market value management

What can we help?

Pre IPO Preparation

  • Business Assessment: Conduct a comprehensive evaluation of the company's financial health and operational structure.

  • Capital Structure Optimization: Advise on the ideal capital structure for the IPO.

  • Financial Reporting: Ensure that financial statements comply with U.S. GAAP or IFRS, as required.

Market Analysis

  • Industry Research: Analyze market conditions, trends, and competitor performance.

  • Investor Targeting: Identify potential investors based on the company’s profile and industry.

Regulatory Compliance

  • Filing Requirements: Prepare and file necessary documents with regulatory bodies (e.g., SEC in the U.S., HKEX in Hong Kong).

  • Due Diligence: Coordinate due diligence processes to identify and mitigate risks.

Valuation and Pricing

  • Valuation Analysis: Conduct valuation assessments using various methodologies (e.g., DCF, comparable company analysis).

  • Price Range Recommendations: Advise on the initial offering price and price range for the IPO.

Underwriting Process

  • Selecting Underwriters: Assist in selecting investment banks or underwriters best suited for the IPO.

  • Negotiation Support: Help negotiate terms and conditions with underwriters.

Marketing and Roadshow

  • Investor Presentations: Develop materials for investor presentations and roadshows.

  • Roadshow Coordination: Organize and manage the roadshow to promote the IPO to potential investors.

Execution of the IPO

  • Timetable Management: Oversee the IPO timeline to ensure all milestones are met.

  • Final Pricing: Assist in determining the final offer price based on investor feedback.

Post - IPO Support

  • Investor Relations Strategy: Develop a strategy for ongoing communication with investors post-IPO.

  • Performance Monitoring: Help track stock performance and advise on future capital-raising activities.

Cross - Boarder Considerations

  • Cultural Insights: Provide insights into the differences in market practices and investor behavior in the U.S. and Hong Kong.

  • Legal and Regulatory Coordination: Ensure compliance with both jurisdictions' regulations throughout the IPO process.

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