Foreign companies may choose to go public in the United States to access larger capital markets or to help build name or brand awareness. Sinoam Global Fund assists foreign private companies in going public. A foreign company which goes public and trades its securities in the United States builds a relationship with its market makers (many of whom are also underwriters) and becomes known to U.S. investors. This exposure may make more likely the obtaining of an underwriter for subsequently raising capital. When going public, the foreign company can choose to be a company in the domicile of choice; the home country, another off-shore destination or here in the United States.
A foreign company can also establish a United States corporation as a subsidiary and register the subsidiary’s securities. Some foreign companies elect to establish a United States corporation and make the foreign company a wholly-owned subsidiary of the United States corporation.
