Companies decide to have an initial public offering for a variety of different reasons. In the case of Ads Inc., a complex and multifaceted company, the reasons for pursuing an initial public offering are different than the typical entity that is trying to raise capital o owners who are trying to liquidate their ownership interest and shows how the public company structure can be used beneficially.
Who is Ads Inc?
Ads Inc is a large group of defensive contractors and other parties to act as a seller and advertiser for these organizations. Primarily, Ads Inc. will serve as a company that combines the resources of different companies and serves as one of the fifty largest government contractors. By pooling the products from different partner Ads Inc is able to offer more attractive pricing and better service the government who desires to limit the number of different suppliers that they deal with in order to simplify their operations and obtain better pricing.
Why an N asdaq Initial Public Offering?
An initial public offering is also known as an IP, and is a situation where a company will have their shares traded on a publicly traded stock exchange. In this example, Ads Inc. would be traded on the N asdaq which is a public exchange that is focused on tech companies. Tech companies, in today’s modern economy, encompasses a wide range of different businesses Ads Inc. will be able to obtain cheaper financing to expand their operations by having an initial public offering done and will be able to better service the government. Further, partners may be more attracted to this structure and a greater number of partners can pool their resources together with a publicly traded entity, taking out shares. These partners can more easily divest themselves of their ownership of Ads Inc. easier with a public structure and make money in the process. To know more about ADS Inc initial public offering come visit http://www.nasdaq.com/markets/ipos/company/ads-tactical-inc-847423-66322.