DPO Advisory

DPO (Direct Public Offering). DPO is part of a strategy MAS Capital developed for its client companies to list in the U.S., with the option of multiple listings in Germany and Canada, and raise capital internationally.

DPO is similar to an initial public offering (IPO) in that securities, such as stock or debt, are sold to investors, but unlike an IPO, a company uses a DPO to raise capital directly and without a “firm underwriting” from an investment banking firm or broker-dealer. A DPO may have a sponsoring FINRA broker, but the broker does not guarantee full subscription of the offering. In a DPO, the broker merely assures compliance with all applicable securities laws and assists with organizing the offering. Following compliance with federal and state securities laws, a company can sell its shares directly to anyone, even non-accredited investors, including customers, employees, suppliers, distributors, family, friends and others.

DPO are primarily utilized by small to medium size companies and nonprofits who want to raise capital directly from their own community rather than from financial institutions like banks and venture capital firms.

DPO are often viewed as a type of investment crowdfunding; but unlike the offerings made under crowdfunding exemptions (Title III of the federal JOBS Act or similar state laws), DPOs are typically registered at the state level and undergo some degree of regulatory scrutiny. DPOs also generally offer more flexibility in marketing and soliciting investors for the offering than exempt crowdfunding offerings.