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Private Placements

Raising Equity Capital

Private Рlacement — the sale of stock (up to 40%) to a relatively small group of investors (up to 10) by either selling shares in circulation, or newly-issued shares. The investors involved include private equity and pension funds, large international banks, and insurance companies.

Client benefits

    Attracting external funding with no specified repayment period.

    Independent business valuation that can further be used in negotiations over majority share holding sale to strategic investors.

    Access to the resources of international capital markets.

    Attracting professional investors’ intellectual resources to managing prospective issuer’s business.

    Increasing a prospective issuer’s investment attractiveness by including professional investors in the shareholding structure.

Sokrat services

    Preparing formalized development strategy and financial model.

    Business valuation and estimation of optimal shares percentage to be offered.

    Business restructuring legal advice and assistance — to comply with investors’ requirements.

    Communication with investors to ensure competitive share pricing.

    Transaction support and tax planning.

    Preparing information materials and documentation for investors.

Transaction features

    Desirable, but not mandatory IFRS and independent Board Members.

    Absence of formal requirements and application of less strict requirements to a prospective issuer’s legal structure and information disclosure.

    No listing required of a prospective issuer’s securities on the stock exchange, IFRS, and information disclosure during and after the securities offering.

Prospective Issuer

    No requirements to comply with stock exchanges’ information disclosure standards.

    Business development strategy for the next 3-5 years desirable, but not required.

    Not necessarily an industry leader, though it has positive growth dynamics.

+38 (044)207-01-00

Office 65, 70 Pochaininskaya str.,
Kiev 04070, Ukraine
E-mail: contact@sokrat.com.ua

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