Offering your company’s securities for sale can present many risks, and hidden potential costs. Going Public can be an appealing strategy but the journey can be filled with challenging twists and turns.
When listing documents/memorandum are issued for the purpose of raising capital through Public Offering these documents will detail financial information about the company & its future plans.
If the performance of securities is not in-line with the investors’ expectations; legal liability exists for material miss-statements of omission in the memorandum related to an offering of securities, and DIC’s Public Offering of Securities Insurance (POSI) covers claims arising from:
The loss arising from prospectus claims against directors/shareholders
The loss arising from prospectus claims against the company
Indemnify the investment bank underwriting the IPO
Internal investigation costs
Emergency Costs & Expenses
Regulatory Crisis Response
Damage of Reputation – Public Reputation costs
Bribery and corruption
Civil Fines and Penalties