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Reg a hitting the market


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Reg a hitting the market

  1. 1. Reg A – Hitting the Market
  2. 2. Perceptions of the success of your offering and your company will depend on how your stock trades
  3. 3. It is important that your stock trades initially at a premium to the offering price - if it goes down months later the market will forgive you
  4. 4. The only way to do this is to price the deal properly and create excess demand – sell more stock than you are offering
  5. 5. You should study how your company is priced compared to already public similar companies
  6. 6. We recommend that you offer the stock at a discount of about 10% to like companies
  7. 7. Remember your rate of growth is most important in pricing your IPO
  8. 8. You should also create demand for about 10-20% more stock than you are selling
  9. 9. Hopefully some of this excess demand will go into the market and buy when your stock starts trading
  10. 10. Remember the Facebook IPO face plant? They sold stock to fill all the demand and the stock sank like a stone
  11. 11. John E. Lux is a securities attorney and former IPO market maker
  12. 12. This is part of a series on Regulation A, so subscribe here for more and to learn more, go to www. and get a free copy of our book “How to Go Public”
  13. 13.  Want to know more? – email me at John.Lux@ Securities-  (240) 200-4529
  14. 14. John E. Lux was in the top 5% of authors on Slideshare in 2014 and has been quoted by Bloomberg as an expert on reverse mergers
  15. 15. Disclaimer  This is not legal or investment advice of any kind  Seek competent advice from qualified attorneys and investment bankers  Your situation may vary  The more you know about finance and business, the more you can profit