Initial Public Offerings (IPOs) /
Reverse Mergers
Dynasty Resources and its financial partners provide
the following financial services to Chinese companies:
- Go public in the United States and become listed on the NASDAQ, the NYSE or Pink Sheets. There are several ways of accomplishing this. Reverse mergers are the most common and least costly method. Please see below for more on Reverse Mergers.
- Go public in Europe or in the United States by way of Luxembourg, whose rules and regulations are lenient and tax laws are beneficial.
- Go public by way of a SPAC – Special Purpose Acquisition Company. A SPAC is a shell or blank-check company that has no operations but that goes public with the intention of merging with or acquiring a company with the proceeds of an initial public offering. Please see below for more on SPACs.
- Provide venture capital / private equity investments from top US firms that specialize in China. Investment targets must be profitable and willing to undergo screening by internationally recognized accounting firms.
Many firms opt for the reverse merger, whereby a private company’s shareholders gain control of a public company by merging it in with their private company. The private company shareholders receive a substantial majority of the shares of the public company (normally 85% to 90% or more) and control of the board of directors. The transaction can be accomplished in as little as two weeks, resulting in the private company becoming a public company.
Advantages of Going Public through a
Reverse Merger or a Public Shell Purchase
- Increased Valuation: Typically publicly traded companies enjoy substantially higher valuations than private companies.
- Capital Formation: Raising capital is usually easier because of the added liquidity for the investors, and it often takes less time and expense to complete an offering.
- Acquisitions: Making acquisitions with public stock is often easier and less expensive.
- Incentives: Stock options or stock incentives can be useful in attracting management and retaining valuable employees.
- Financial Planning: Public company stock is often easier to use in estate planning for the principals. Public stock can provide a long term exit strategy for the founders.
- Reduced Costs: The costs are significantly less than the costs required for an initial public offering.
- Reduced Time: The time frame requisite to securing public listing is considerably less than that for an IPO.
- Reduced Risk: Additional risk is involved in an IPO in that the IPO may be withdrawn due to an unstable market condition even after most of the upfront costs have been expended.
- Reduced Management Time: Traditional IPOs generally require greater attention from senior management.
- Reduced Business Requirements: While an IPO requires a relatively long and stable earnings history, the lack of an earnings history does not normally keep a privately held company from completing a reverse merger.
- Reduced Dilution: There is less dilution of ownership control, compared to a traditional IPO.
- Reduced Underwriter Requirements: No underwriter is needed: (a significant factor to consider given the difficulty companies face in attracting an investment banking firm to commit to an offering.)


SPACs, Special Purpose Acquisition Companies, are investments vehicles that allow public investors to invest in areas sought by private equity firms.

SPACs are shell or blank-check companies that have no operations but that go public with the intention of merging with or acquiring a company with the proceeds of an initial public offering. A SPAC is similar to a reverse merger. However, unlike reverse mergers, SPACs come with a clean public shell company, better economics for the management teams and sponsors, certainty of financing/growth capital in place, a built-in institutional investor base and an experienced management team. SPACs are set up with a clean slate where the management team searches for a target to acquire. This is contrary to pre-existing companies in reverse mergers.
Dynasty also makes available access to exchanges in Continental Europe, Latin America, the United Kingdom, Canada and parts of the Asia-Pacific region. Clients can trade foreign securities in either US dollars or a variety of foreign currencies including Euros, Canadian Dollars, Swiss Francs, and British Pounds Sterling.
Our partners are members of the New York Stock Exchange, the American Stock Exchange, the Archipelago Exchange and the Securities Investor Protection Corporation (SIPC). These Wall Street resources are ideal for small- and medium-sized Chinese companies that seek working capital and /or aim to to be listed OTC, on the NASDAQ, the NYSE or other exchanges.