Offering Circular

Offering Circular

The Prospectus.com team assists companies worldwide with offering circular writing, filing and registration of securities offering documents with the pertinent regulatory regimes.

An offering circular, also referred to as “OC” is one of the most common documents used for company filings.  The OC is somewhat of a synopsis of the fuller, longer prospectus.  The offering circular is similar in fashion to other types of financing documents used to raise capital such as an offering memorandum.  The circular lists many disclosures of the company, as well the financials and other vital business information.  Creating an investor-ready offering circular is vital for many companies to successfully raise capital.

Investors

An OC is mainly geared for investors and is therefore written with securing investment capital as the ultimate goal. Since many investor groups do not want to read a full prospectus due to its length, they may ask for the offering circular, as this would be a shorter document that summarizes information found in the prospectus.  OC’s are typically used to raise capital for equity offerings, such as common stock or for the sale of preferred shares.  Yet many funds such as mutual funds and hedge funds utilize offering circulars to sell securities of various types to investors as well.

Summary or Executive Summary

An executive summary is to the business plan as the offering circular is to the prospectus.  Executive summaries are employed so that an investor can get a macro glimpse of the business.  This is also true for offering circulars.  Even though an executive summary and an offering circular are shortened versions of their respective plans, an investor will most likely read the full business plan or full prospectus before investing.  But what is mostly certain is that if an investor finds the offering circular (or the executive summary) not satisfactory, they may just skip out reading the longer version and pass on the deal altogether.

Highlights

The main function of any offering document – and in particular the offering circular – is to show investors the highlights of the company in a shorter document than the prospectus.  This minimizes the time potential investors need to make an educated decision about reading the longer final prospectus.   It also gives the issuer more breathing room since it takes less time for someone to read the offering circular and make a decision on investment.

Bond Circular and Note Circular

Offering circulars are also created for debt instruments and those selling debt securities such as bonds, notes and convertible debt in general.  Such a bond circular would contain information such as the interest rate, the maturity date, the overall terms of the engagement, coupon payments and dates, use of proceeds and much more.  The bond circular or the note circular is a shortened version of a prospectus as well, and of course if an investor likes they see with the bond circular they may ask for the longer bond prospectus document.

Prospectus.com

Our team of writers at Prospectus.com can assist your company or fund with your OC (and other types of offering documents), as well as file and register those offerings with various government bodies worldwide.  Please reach out to us for a free consultation.

 

Contact Us Today To Schedule Your Free Consultation

Offering Circular aka OC


Read More

Offering Circular