For some companies raising an initial tranche of investment capital ahead of a listing maybe a suitable option. In circumstances where a company is looking to add scale ahead of a flotation, perhaps by undertaking an acquisition, this may prove an attractive option. Pre-float funding rounds are generally undertaken in a matter of weeks and can be achieved without the need for either a full prospectus or admission document.
Cash shells can provide a modest amount of funding. Generally the funding in the shell company will be accessed via are4verse transaction.
Most companies will raise their first tranche of funding when they list on a stock market. Once listed companies can undertake multiple additional fundraisings if required. It is this facility that is particular appealing to high growth companies or those looking to undertake repeat strategic acquisitions post admission to a stock market.