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26 November, 00:35

A company that has just completed its Initial Public Offering has raised $200 million of capital and has been listed on the NYSE. How long must the company wait in order to do an add on share offering without having to file an S-1 full registration with the SEC

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  1. 26 November, 01:45
    0
    1 year

    Explanation:

    Under the shelf registration rule the company has to wait for up to 1 year because it is madated that the company file quarterly and annual reports with the SEC, before it can do an "add on" offering under the Security and Exchange Commission (SEC) Rule 415.

    Note that the "add on" offering are additional shares issued by a company after going public inorder to raise cash or for expanding into new markets.
  2. 26 November, 02:02
    0
    It generally takes 4-6 weeks to process a listing application offering without having to file an S-1 full registration with the SEC. This time frame is variable and may be shortened considerably. Invariably, if the application raises no issues and the company responds to staff comments.

    Explanation:

    An Additional (ad) or Secondary offering is the sale of new or closely held shares by a company that has already made an initial public offering (IPO). The proceeds from this sale are paid to the stockholders that sell their shares. Meanwhile, a dilutive secondary offering involves creating new shares and offering them for public sale to raise additional funds for the company making the additional offering.
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