8.6 Comparative Analysis of Public Offerings and Private Placements

PointPublic offeringPrivate placementInvestorsThe open publicThe identified, limited fewRegimeSEBON's approval; the full prospectusThe lighter disclosure; the caps- and-locksCost-and-timeHigh (the issue manager, rating, underwriting, the marketing)Low-and-fastLiquidityThe listed-and-tradeable paperThe restricted paper (the lock-ins)PricingThe market's discovery (the book/price-band faces)The negotiated priceThe typical useThe growth capital at scaleThe strategic-and- bridge capitalThe exam's synthesis: the choice is the cost- benefit of the disclosure — the public's money buys the public's truth at the public's cost.