Allegiancy recently moved into Boulders III. Photo courtesy of Consociate Media.
A local real estate firm is inching closer to a big-money capital raise.
Allegiancy, a commercial real estate asset management company headquartered on the Southside, has set a price range of $14-$16 per share for a pending stock offering that it hopes to open to the market this month in a bid to net up to about $30 million.
The company, which oversees property management, leasing, construction, financing and other day-to-day operations of commercial buildings across the country, also announced last week that it has hired San Francisco investment banking firm WR Hambrecht to help take its shares to market using newly enacted Securities and Exchange Commission rules.
Steve Sadler
Known as Regulation A+ and having garnered the nickname “IPO Lite,” the rules are designed to make it easier, cheaper and faster for smaller companies to raise capital through limited stock offerings and allow average investors to buy in. Previously, most equity offerings from smaller companies were limited to accredited investors and capped at lower dollar amounts.
Now all that stands in Allegiancy’s way is a final approval from the SEC. The company filed its initial offering documents with the SEC in September. The regulator came back with comments on things to be amended, and Allegiancy CEO Steve Sadler said the company’s new filing last week has addressed those comments.
“In theory, (the SEC) will write us a love letter in two or three weeks and give us the green light,” Sadler said.
Once the shares go public, investors would be buying common stock in a company that has management contracts for 65 properties with a total size of about 7 million square feet of mostly Class-A office buildings around the U.S. The shares will be tradable, likely on the OTCQX market.
The capital raise would allow Allegiancy to further its recent growth, which was fueled by a $5 million capital raise last year, followed by an acquisition this summer. It was also named to the RVA 25, a list of Richmond’s fastest-growing companies.
“We’ll basically continue to execute our business plan – building out our technology platform and making acquisitions of other asset managers,” Sadler said.
Allegiancy recently moved into Boulders III. Photo courtesy of Consociate Media.
A local real estate firm is inching closer to a big-money capital raise.
Allegiancy, a commercial real estate asset management company headquartered on the Southside, has set a price range of $14-$16 per share for a pending stock offering that it hopes to open to the market this month in a bid to net up to about $30 million.
The company, which oversees property management, leasing, construction, financing and other day-to-day operations of commercial buildings across the country, also announced last week that it has hired San Francisco investment banking firm WR Hambrecht to help take its shares to market using newly enacted Securities and Exchange Commission rules.
Steve Sadler
Known as Regulation A+ and having garnered the nickname “IPO Lite,” the rules are designed to make it easier, cheaper and faster for smaller companies to raise capital through limited stock offerings and allow average investors to buy in. Previously, most equity offerings from smaller companies were limited to accredited investors and capped at lower dollar amounts.
Now all that stands in Allegiancy’s way is a final approval from the SEC. The company filed its initial offering documents with the SEC in September. The regulator came back with comments on things to be amended, and Allegiancy CEO Steve Sadler said the company’s new filing last week has addressed those comments.
“In theory, (the SEC) will write us a love letter in two or three weeks and give us the green light,” Sadler said.
Once the shares go public, investors would be buying common stock in a company that has management contracts for 65 properties with a total size of about 7 million square feet of mostly Class-A office buildings around the U.S. The shares will be tradable, likely on the OTCQX market.
The capital raise would allow Allegiancy to further its recent growth, which was fueled by a $5 million capital raise last year, followed by an acquisition this summer. It was also named to the RVA 25, a list of Richmond’s fastest-growing companies.
“We’ll basically continue to execute our business plan – building out our technology platform and making acquisitions of other asset managers,” Sadler said.
That’s a great result and best wishes for Allegiancy’s continued growth, but for many small businesses and entrepreneurs, raising capital through a Regulation D private offering is going to cost less and involve far fewer regulatory hurdles. Rule 506 allows companies to raise an unlimited amount of money from an unlimited number of accredited investors without having to navigate the SEC registration process. A new set of rules going into effect next year will allow small businesses to raise up to $1 million through online crowdfunding for the first time, so there are a variety of ways to raise capital… Read more »