Shape Capital has an established network of investment banks, brokers, investor relations firms and legal firms in the US and Canada.
Unlike Australia, North America has multiple public markets and stock exchanges that support both early stage innovative companies ‘referred to as public venture capital’ and large cap global firms.
There are many ways Australian companies can list in North America. The fastest and most cost effective pathway is a Direct Listing which takes approximately 3 months to complete and is a lot more cost effective than listing locally.
We provide access to financing in North America via an IPO or a private placement. From venture stage to established companies, our network provides funding for growth capital and acquisition financing.
Listing in North America does not exclude local Australian shareholders from trading their shares. As a local shareholder you can trade both the Canadian and US markets via an international broker account with CommSec and also dozens of North American brokers.
There are multiple stock exchanges in Canada and USA. Each has their its listing requirements and listing rules. The Canadian Securities Exchange has no minimum market cap requirement, no balance sheet hurdles, and no revenue or profitability requirements. Twelve months’ working capital at listing is the main listing requirement. For larger more stablished companies the TSX, TSXV or NASDAQ have more stringent listing requirements.
If you are an early stage and emerging company, you can list on one stock exchange and then passport to a larger stock exchange once your company is ready.
Why Australian Companies Go Public in North America
Access to Capital
Listing provides access to public venture capital and financing for expansion of operations, hiring or acquisitions.
Capital raising via a Placement is often faster process for public companies.
Facilitate Growth via M&A
As a public company, shares can be used as consideration to acquire target companies, as an alternative to cash. Using liquid shares as acquisition consideration can be a tax-efficient and cost-effective means to finance acquisitions.
Increase Visibility and Prestige
Going public enhances visibility and market awareness. Greater public awareness gained through media coverage, publicly filed documents and coverage of their shares by sector investment analysts can provide companies with a higher profile and credibility.
Provide Liquidity for Shareholders Including Investors
Becoming a public company establishes a market for a company’s shares, providing investors with an efficient and regulated vehicle in which to trade their shares. Greater liquidity in the public market can often lead to better valuation than would be achieved as a private company.