Explore 4 proven going public strategies in 2024: IPO, SPAC, CPC, and RTO. Compare timelines, costs, and market fit for businesses targeting US and Canadian markets.
Last Reviewed: November 2024 | Originally Published: 2024
Businesses pursuing public market access in 2024 have four primary going public strategies available: a traditional Initial Public Offering (IPO), a Special Purpose Acquisition Company (SPAC) merger, a Capital Pool Company (CPC) transaction, or a Reverse Takeover (RTO). Each pathway offers distinct advantages depending on your business stage, target market, and capital objectives. Choosing the right route is one of the most consequential decisions a private company will make on its path to public markets.
According to the U.S. Securities and Exchange Commission (SEC), over 600 SPAC IPOs were completed between 2020 and 2022 alone, demonstrating that alternatives to the traditional IPO have fundamentally reshaped how businesses access public capital. For companies operating across Hong Kong, Dubai, North America, and beyond, understanding which pathway aligns with your strategic goals is the foundation of a successful public market debut.
The route you take to go public determines more than just your listing timeline. It shapes your investor profile, your regulatory obligations, your capital structure, and your long-term market positioning. A company that selects the wrong pathway risks delays, unfavourable valuations, and unnecessary regulatory exposure.
Different pathways suit different business profiles. Early-stage businesses with strong management teams may find CPC transactions ideal for accessing Canadian capital markets. Growth-stage companies with US investor relationships may find SPAC mergers faster and more efficient than a traditional IPO. Mature businesses seeking a cost-effective entry into public markets often benefit from RTOs. Understanding these distinctions is not optional — it is strategic necessity.
The traditional Initial Public Offering remains the most recognised going public strategy globally. In an IPO, a company works with underwriting banks to issue new shares to the public, listing on a major exchange such as the NYSE, NASDAQ, Toronto Stock Exchange (TSX), or Hong Kong Stock Exchange (HKEX).
The advantages are significant: access to deep pools of institutional capital, enhanced brand credibility, and the ability to set a market-determined valuation through a formal bookbuilding process.
The requirements are equally demanding. A traditional IPO typically requires two to three years of audited financial statements, demonstrated revenue growth, and a management team with public company experience. Legal, accounting, and underwriting fees often exceed $5 million USD for mid-market transactions, and the process can take 12 to 24 months from initial preparation to listing day.
For businesses based in the United States, Canada, or targeting North American institutional investors, a traditional IPO remains the most prestigious pathway — but it rewards only those who arrive fully prepared.
The traditional IPO is not simply a financing event. It is a comprehensive transformation of how a business operates, reports, and communicates with the market. Companies that treat it as anything less routinely underestimate what public market readiness truly demands.
SPAC transactions — mergers with Special Purpose Acquisition Companies — have become one of the most actively discussed going public strategies for growth-stage businesses. A SPAC is a publicly listed shell company formed specifically to acquire a private business, effectively taking it public through the merger.
The appeal is clear: a SPAC merger can be completed in four to six months, compared to twelve to twenty-four months for a traditional IPO. The target company negotiates a fixed valuation directly with the SPAC sponsor, removing the pricing uncertainty inherent in public bookbuilding.
For businesses in sectors including technology, clean energy, financial services, and healthcare — particularly those with operations across the United States and Canada — SPAC mergers offer a compelling combination of speed and valuation certainty. Sunpoint Capital maintains an active global network connecting businesses to qualified SPAC sponsors in both US and Canadian markets, enabling clients to identify the right SPAC structure for their specific growth objectives.
For a deeper understanding of how SPAC structures work and what they require, the comprehensive resource on what is SPAC financing provides essential background for any business evaluating this pathway.
SPAC transactions are not shortcuts — they are structured alternatives. The businesses that succeed through SPAC mergers are those that prepare with the same rigour as a traditional IPO candidate, but deploy that preparation through a faster, negotiated process rather than a public bookbuilding exercise.
The Capital Pool Company program is a uniquely Canadian going public strategy administered by the TSX Venture Exchange (TSXV). It is one of the most underutilised yet highly effective mechanisms for businesses seeking access to Canadian capital markets.
A CPC is a listed shell company formed by experienced executives and directors, capitalised through a small IPO. The CPC then searches for a qualifying transaction — the acquisition of a private business — which simultaneously takes that business public. The process is highly regulated, transparent, and specifically designed to support earlier-stage businesses that may not yet qualify for a full TSX or NASDAQ listing.
Key advantages of the CPC pathway include:
For businesses in Asia-Pacific markets — including Hong Kong — looking to establish a North American capital markets presence, the CPC pathway provides a regulatory and cost-efficient entry point that traditional routes cannot match at equivalent business stages.
A Reverse Takeover (RTO) involves a private company acquiring a controlling interest in an existing publicly listed shell company, thereby gaining public status without completing a formal IPO process. RTOs are executed in both Canadian and US markets and have become an increasingly preferred strategy for businesses with strong fundamentals seeking a time-efficient route to public markets.
The strategic rationale is straightforward: the listed shell company already holds regulatory approvals and exchange listings. The private business acquires control, restructures the entity around its own operations, and emerges as a newly operational public company. The process typically completes in three to nine months, significantly faster than a traditional IPO.
RTOs are particularly well-suited for businesses based in markets like Dubai and Hong Kong that are targeting North American investor bases but face the time and cost constraints associated with full IPO preparation. They are also frequently selected by companies that have recently completed significant operational milestones and want to capture the capital markets opportunity without a multi-year preparation window.
Regulatory compliance, disclosure obligations, and shareholder structure management are critical success factors in any RTO. Professional advisory support is not optional — it is the difference between a smooth transaction and a regulatory complication that delays or derails the listing.
Q: What is the fastest way for a private company to go public in 2024?
SPAC mergers and RTOs are currently the fastest pathways, with timelines of four to nine months respectively. Traditional IPOs and CPC qualifying transactions typically require twelve to twenty-four months of preparation. The fastest pathway must be matched against your business's regulatory readiness, not selected based on timeline alone.
Q: Which going public strategy works best for businesses outside North America?
Businesses headquartered in Hong Kong, Dubai, or other Asia-Pacific and Middle Eastern markets frequently access North American capital through SPAC mergers and RTOs, as both pathways allow the business to structure the transaction from its home jurisdiction while gaining a US or Canadian exchange listing. CPC transactions offer a regulated Canadian entry point that is accessible to international businesses meeting TSXV requirements.
Q: How do advisory fees compare across the four public market pathways?
Traditional IPOs carry the highest total advisory and underwriting costs, often exceeding $5–10 million USD for mid-market transactions. SPAC mergers involve SPAC sponsor fees (typically 20% founder shares) plus transaction costs. RTOs and CPC transactions are generally more cost-efficient, with total transaction costs often ranging between $500,000 and $2 million CAD depending on complexity.
Selecting a going public pathway is not a standalone decision. It sits within a broader capital access strategy that encompasses pre-transaction financing, investor relations infrastructure, post-listing compliance obligations, and long-term capital markets positioning.
Sunpoint Capital provides tailored capital access strategies covering all four pathways, with a global network that connects businesses to qualified capital market participants across the United States, Canada, Hong Kong, and Dubai. The firm's approach integrates both financing execution and strategic advisory services — ensuring that clients receive end-to-end support rather than transactional assistance at a single point in the process.
For businesses evaluating broader capital market access strategies beyond the four pathways described here, the guide on how to access capital markets provides an expanded framework for businesses at different stages of growth.
Public markets reward preparation. The businesses that achieve successful public listings — regardless of the pathway they choose — share a common characteristic: they begin their preparation long before they believe they are ready to list.
The four going public strategies available in 2024 each represent a distinct risk-return profile, timeline, and capital market relationship. A traditional IPO maximises credibility and institutional access at the cost of time and capital. A SPAC merger optimises speed and valuation certainty. A CPC transaction opens the Canadian capital markets to businesses at earlier stages of development. An RTO provides efficiency and pragmatism for businesses with strong operational foundations.
The correct choice is determined by your specific business profile, your target capital markets, your timeline, and the quality of advisory support you engage. In a market environment shaped by evolving regulatory standards — including updates from the SEC in the United States and the TSXV's ongoing policy development in Canada — professional guidance is the single most reliable predictor of transaction success.
This article reflects market conditions and regulatory frameworks as of the Last Reviewed date stated above. Businesses should seek qualified legal and financial advice before initiating any public market transaction.