Non-U. S. Companies Going Public in the States
By William Cate
Published November 1999
[http://home.earthlink.net/~beowulfinvestments/] [http://home.earthlink.net/~beowulfinvestments/globalvillageinvestmentclubwelcome/]
Why should your company go public in the United States? If you are
a non-U. S. Private company, here are ten reasons why you should file your
prospectus with the U. S. Securities and Exchange Commission (SEC).
1. If you don't file with the SEC, your stock can't legally trade
in the United States. The American Over-the-Counter Market is among the
best capitalized risk equity markets in the World.
2. In many countries, the local Stock Exchange has listing
requirements modeled after the rules of the New York Stock Exchange. This
practice excludes most private companies from access to local investors.
3. American public companies face fewer economic barriers in the
Global Village. Trading in the States offers non-U. S. companies superior
economic credibility.
4. Your company will be valued in U. S. Dollars. This is a major
advantage in countries with weak currencies.
5. It's easier to arrange an Offshore Private Placement for a
non-U. S. Company. This advantage is so important that I advise American
companies to incorporate overseas to qualify for the Offshore Private
Placement benefits.
6. As a company trading in the United States, its easier and less
costly to list your company on a European and/or Asian stock exchange.
7. In many countries, a Government policy pendulum swings between
privatization and nationalization. Privatization is the current fad. It's
needed to revitalize failing Government businesses. However, when those
businesses succeed, Nationalization will be popular again. If your company
trades in the States, it's a less attractive target for nationalization.
8. When your stock trades in the States, your company has better
access to American markets for your products or services.
9. There are American accounting firms everywhere in the World.
Finding auditors, for your SEC filing isn't difficult. It's usually less
costly than hiring the same firm in the United States.
10. Non-U. S. Companies are as easily spunoff as American companies.
If you are a non-U. S. Company seeking to raise risk capital,
consider listing your company on the U. S. OTCBB. It works.
If you have questions about any of the points in this article or
wish to pursue becoming a US listed company, contact me.
To contact the author: Visit the Beowulf Investments website: [http://home.earthlink.net/~beowulfinvestments/] Or, visit the Global Village Investment Club Website:
[http://home.earthlink.net/~beowulfinvestments/globalvillageinvestmentclubwelcome/]
About the Author
He has been the Managing Director of Beowulf Investments [http://home.earthlink.net/~beowulfinvestments/] since 1981 and is the Executive Director of the Global Village Investment Club [http://home.earthlink.net/~beowulfinvestments/globalvillageinvestmentclubwelcome/]