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WSE InfoSpace

Raising capital

How to raise capital on the WSE and NewConnect

How to get extra money for business development?
What advantage?
Do you take out a loan?
Do you turn to investment funds?
Or maybe the stock market?
Or issues of debt securities?


Companies often get the problem of choosing the appropriate source of funding and its subsequent acquisition on attractive terms. To date, the most common source of development of the company was its own capital and credit. Making the right choice based funding offer banks, funds of a "venture capital" or capital raising capital on the stock exchange.

The decision on whether the IPO should be preceded by the development of a clear and well-thought-out financial strategy means that the first step is a thorough rethink and formulate the development strategy of the Company.

Only then can decide what further developments and its method of financing. One of the basic decision is a choice between equity financing (ie, profit, capital increase by existing shareholders or new shareholders the sale of shares) and foreign capital, that is, bonds or credit. Equity accepts much higher risk than financing the project loan and provides greater flexibility in decision-making. Funding equity ownership affects the system and in the economic sense is much more expensive in the future, because it expects higher returns. However, at the beginning, companies often need equity and not loans.

In turn, the credit is cheaper and easier to be repaid, but it requires a specific order and security. Banks also often are not willing to credit certain projects or industries, especially those characterized by a higher level of risk.

An alternative to bank loans are bonds. The downside of the bond issue - compared to a bank loan - are higher costs of preparing documentation and legal costs and requirements for issuers. As a rule, interest costs are also larger than the loan. The advantage of the bond is to build relationships with investors, who in the future can buy shares of the issuer.

Explained - the introduction of structured WSE, NewConnect

KP Dragon Index

# Company Code Sector shares Outstanding Loc. FX price Market capitalization Weight free float free float
Weight (%)
City ($) (Local m) ($ M) (%) ($ M)
1 Astarta Holding AST PW Food & Agriculture (Sugar) 25,000,000 PLN 454.0 17.83 1,612 445.6 6.68% 36.21% 161.4 7.43%
2 Centrenergo CEEN Utilities (Electricity Generation) 369,407,108 UAH 11.02 0.43 4,070 159.8 2.39% 21.70% 34.68 1.60%
3 DUPD DUPD LN Construction & Real Estate (Development) 109,361,515 GBP 5.34 0.21 17.77 22.94 0.34% 53.10% 12.18 0.56%
4 Ferrexpo FXPO LN Metals & Mining (Iron Ore) 588,624,142 GBP 91.63 3.60 1,640 2,118 31.73% 25.90% 548.4 25.25%
5 Industrial Milk Company IMC PM Food & Agriculture (Crop growing) 31,300,000 PLN 71.95 2.82 319.9 88.42 1.32% 31.30% 27.67 1.27%
6 JKX Oil & Gas JKX LN Oil & Gas 171,723,145 GBP 4.44 0.17 23.18 29.92 0.45% 22.35% 6.69 0.31%
7 kernel Holding KER PW Food & Agriculture (sunflower oil) 81,941,230 PLN 434.4 17.06 5,057 1,398 20.94% 61.87% 864.7 39.80%
8 MHP MHPC LI Food & Agriculture (Poultry) 106,781,794 USD 263.6 10.35 1,105 1,105 16.56% 36.60% 404.5 18.62%
9 Motor Sich MSICH Manufacturing (Aircraft engines) 2,077,990 UAH 2,526 99.18 5,249 206.1 3.09% 19.06% 39.28 1.81%
10 Ovostar Union OVO PW Food & Agriculture (Eggs) 6,000,000 PLN 753.3 29.58 642.0 177.5 2.66% 31.80% 56.43 2.60%
11 Raiffeisen Bank Aval Bavla Financials (Banking) 61,495,162,580 UAH 0.27 0.01 16,757 657.9 9.86% 1.70% 11.18 0.51%
12 Ukrnafta UNAF Oil & Gas 54,228,510 UAH 124.5 4.89 6,751 265.1 3.97% 2.00% 5.30 0.24%
  Total or Average             6,674 100% 32.55% 2,172 100%

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