Direct Public Offering - Requirements

Requirements

Any company following the applicable rules and regulations can go public by direct public offering. There are no sales, profit, asset or other traditional requirements or qualifications.

Companies interested in completing a direct public offering must have:

1. a complete set of internally generated financial statements
2. financial statements audited by a qualified accounting firm
3. a registration statement filed and declared effective by the Securities and Exchange Commission

After the Securities and Exchange Commission declares a registration statement effective and subject to compliance with state blue sky laws, a company may sell its shares to the public using a variety of methods. Upon completion of the public offering, the company may find a market maker to file an application for a trading symbol and stock listing.

Some companies attempt to organize their financial statements, audit and legal filings on their own, but many utilize direct public offering services offered by a consulting firm.