How to put a company on the stock exchange
How to check whether the company is ready to be made public
- The adoption of the development strategy by the owners and the management company
- Readiness audit and accounting law
- Willingness to publish the good and bad news
- cost of being a public company
How to contribute to the success of the IPO
The attractiveness of the company - Skillfully presented to the company, indicating the areas in which the company stand out. The company should explain the objectives, which is to serve and offer activities and priorities.
Competent and effective management - The quality of the management team is one of the most important criteria for evaluating the attractiveness of the company by investors. It should be in an optimal way to present market competence and effectiveness of the board.
financial history - presentation of financial data for the period of several years confirming the possibility of working out a profit and positive cash flow
An effective reporting system - the availability of different cross-sections showing a way of earning, profit margins and the exact cost structure. Reporting method should clearly have different cross-sections of revenues and expenses by business lines.
good practices corporate- compliance with international market practices in the management and provision of information determines the quality of the company.
What most investors express reservations:
- little convincing equity story - the lack of a coherent vision of a marketing offer;
- few promising prospects in the eyes of financial investors;
- Differences of view on the valuation of the company between the owners and potential investors;
- insufficient experience of management in the eyes of investors;
- unavailability of appropriate audited historical financial information;
- complex financial history - the lack of adequate additional financial information;
- The complex structure of the group - legal and tax;
- problems in the field of corporate governance;
- significant transactions with related parties;
- insufficient working capital;
- inappropriate or ineffective reporting and control systems (financial and non-financial);
- no change in the organizational culture;
- the wrong or inexperienced adviser;
- poor project management
How much money can be recovered in the course of the IPO? That was the question we all ask themselves Issuers owners and presidents. In this case, it depends on the size and attractiveness of the issuer. You should also rely on historical data IPOs and market situation.
The number of new listings of domestic companies with an offer of shares and the average size of deals million zł on the main market of the Warsaw Stock Exchange on the basis of the size of assets or revenue in the years 2003-2011
The costs of the IPO are for many, especially small companies, one of the most important disincentives to conduct a public offering.
Practice confirms that a decisive impact on the cost of the IPO is the percentage value of the offer. In the case of the smallest IPO on the main market, with a value of less than 50 million zł, the share of costs than 6% in terms of costs debut on the NewConnect market are lower than on the main market, but in the case of foreign companies is much higher.
Costs on NewConnect are:
- remuneration Authorized Adviser
- audit accountant
- legal audit (recommended)
- promotion costs,
- administrative fees,
Investment decisions, institutional investors and individual, take after analysis of the company, which includes the valuation, the history and development prospects. Institutional investors typically have a longer investment horizon than individual investors.
Among the most popular methods of valuation are comparative methods (multiplier) using share prices of companies with comparable sectors and income methods.
Generally, the IPO discount is applied compared to their expected value on the market debut. Discounting is a specific remuneration for the investor submitting a subscription rookie, compensating somewhat the risk associated with the purchase of shares and the costs arising eg. The financing of the purchase of credit. This phenomenon is illustrated by way of shaping the company's share price after its debut.
NewConnect has a higher risk than the main market, which is reflected in the rate of return obtained from companies debuting on the market. The rates of return at the close of the first trading day varied from year 2013 as follows:
What share of the shares should be offered?
The choice of the number of shares is the result of the assessment of how many shares existing shareholders are willing to sell and the amount of money needed to finance the strategy.
With this calculation must take into account the liquidity of the shares on the stock exchange, the dispersion of shareholders and big enough package of shares subject to the offer so that shareholders can efficiently buy and sell stocks.
Each case is individual, however, most sold in the IPO is to 20 30% acacia.
The tasks of the parties involved in the IPO process
Prospectus and the Information Document
For the regulated market and public offerings is required Prospectus. The contents of the prospectus and the rules of its preparation are specifically defined by the EU regulations, in particular the so-called. Prospectus Regulation (809 / 2004).
On the NewConnect market in the private offer is valid Information Document, the content of which is described in Annex 1 to the ATS Rules
A sample schedule for the IPO process on the main market
Obligations Information on the main market and NewConnect
How to get an investor?
See description of the method of obtaining the investor included in the tab Gaining investor. The material is addressed to entrepreneurs, owners Logging money to grow your business. The material shows the actions necessary to obtain financing from the investor, how to prepare the company for investments that create documentation and how to carry on a conversation with the investor.