The Difference between an IPO and an APO

IPO vs APO pic


Founded by Robert Eide in 1984, Aegis Capital Corp. has evolved from a real estate focused business to a full service wealth management firm to meet the changing needs of clients. Offering comprehensive financial and investment services, Aegis Capital Corp. offerings include including APO venture capital and bridge services to an IPO.

Often used by smaller companies and startups that need additional investment to expand, an Initial Public Offering (IPO) is the first public sale of stock by a private company. Generally in an IPO, an underwriting firm helps to determine the correct timing of an initial offering and will also determine what price to set. An alternative public offering (APO), is an alternative to an IPO that still allows a company to go public.

An APOs key difference from an IPO is that it allows a company to go public with no public raising of capital. The capital in an APO is instead obtained through a private agreement where an investor, usually institutional in nature, purchases shares. This is called a private investment of public equity. The other component of an APO is a reverse merger, where investors acquire a majority stake of a public shell company and merge it with the private firm going public. By using this process, an APO offers a simpler and faster means to go public compared to an IPO.


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