Initial Public Offering (IPO)

Raising Equity Capital

Initial Public Offering (IPO) — the first sale of stock to a wide range of investors through listing shares on a stock exchange. Companies offering securities in an IPO are usually seeking outside equity capital and a public market for the stock.

Transaction benefits

—

Financial resources for future business development with no specified repayment period.

—

Lowered borrowing rates and diversified funding sources.

—

Ongoing independent (market) business valuation that can further be used in negotiations over majority share holding sale to strategic investors.

—

Mergers and acquisitions funding using additional share offerings.

—

Gained credibility among investors, partners, and clients.

—

Public reputation and status, which permits the attraction of reliable and professional partners, as well as finding new high profile counterparts.

Sokrat services

—

Transaction viability estimation and overall placement strategy.

—

Evaluating IPO features: expected share price and placement volume.

—

Business restructuring, legal advice and assistance - for complying with investors’ demands, as well as the formal requirements of regulators and stock exchanges.

—

Selection and coordination of third parties’ engagement (auditors, legal counsels, etc.).

—

Preparing information materials (prospectus, info memos, presentations) and documentation for investors.

—

Coordination of the structuring and drafting of legal documents.

—

IR coordination, including the organization of road-shows and presentations.

—

Communication with investors to ensure competitive share pricing.

—

Transaction support and tax planning.

—

Post-IPO analytical support.

Transaction features

—

Strict formal requirements for prospective issuer’s legal and organizational structure, as well as for obligatory financial information disclosure and shareholding structure.

—

IFRS-audited financials and independent Board members are strict requirements.

—

Mandatory listing of shares on a stock exchange.

—

Regular IFRS reporting and ad-hoc disclosure of the company’s material financial facts and important events.

Prospective Issuer

—

Business development strategy for the next 35 years.

—

Readiness for regular and full information disclosure to the public, including shareholders, mass media, and market analysts.

—

Industry leader with positive growth dynamics.