This chapter discusses the pros and cons of a U.S. IPO by considering two topics: first, underwriter spreads and under‐pricing and second one is an initial public offering (IPO) offering expenses and post‐IPO compliance expenses.
The chapter also focuses on the use of Rule 144A IPOs and the problems of small‐cap IPOs in the United States. It then reviews the increasing international competition with U.S.
Go Public or Go Home: The Pros and Cons of IPOs
IPO markets, particularly for smaller IPOs, and the reasons why smaller companies may wish to consider an international IPO as an alternative. It considers certain U.S.
tax issues in structuring equity incentives that may not be applicable to international companies. International companies should consult their own tax advisors for the tax consequences of equity incentives.
Finally, it suggests changes that can be made to the U.S.
regulatory structure to make it more attractive for smaller IPOs.