WHY TO GO PUBLIC
The main advantages of going public
Companies go public with a bit of exaggeration for "unlimited resources" for planned expansion or other investment plans. And without endangering the company's cash flow and without a credit burden or "repayment schedule".
Without Borrowing or Borrowing at An Interest Rate You Choose
The advantages of the public offering of shares include the optimization of the company's capital structure and the cost of current loans. Listed companies have a better bargaining position vis-à-vis financial institutions and can react flexibly to market developments.
Access $25 Million The Question is Are You Ready For Funding.
Admission to the stock exchange is a way to increase prestige and build a brand. The company will become a transparent and respected player and will rise in the eyes of investors and costumers. The company will also become more interesting as an employer.
Gaining Trusted Employees is an Option
The company decides for itself what share it will leave to external investors and how much of the subscription will be dispersed. It will not lose control and no restrictions in the form of pledges or guarantees await it.
The costs that the issuer pays for the admission of shares to trading on the Prague Stock Exchange are among the lowest in the CEE region, or in the whole of Europe. Thanks to unified European regulation, the stock exchange provides all issuers with a completely comparable service with other markets within the EU.
90% are Foreign Entities. Does It Matter Where Your Investors Are?
More than 90% of institutional investors on the Prague Stock Exchange are foreign entities. With this share, the Stock Exchange ranks among the markets with the largest share of foreign capital and thus brings its issuers a wide international investment potential.
Get Notices World Wide
Companies traded on the Prague Stock Exchange are included in the main PX or PX-TR index if they qualify. Both of these indices are prestigious market indicators and many foreign investors invest in equities included in these indices.
It starts by evaluating whether listing makes sense for your company.
Let’s Take A look and See How Much You Can Get.
It consists mainly in the preparation of all documents and documents necessary for the subscription of the company's shares.
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The actual subscription of shares on the PX Start market consists of the following steps.
The shares are listed on the stock exchange and are traded every trading day
FREQUENTLY ASKED QUESTIONS
What is an IPO?
The initial public offering is the company's initial listing on the stock exchange and at the same time a chance to raise a large amount of capital. During the public offering of shares, the company sells securities to the general public, both to individual and professional investors. They thus provide the company with the means to realize known intentions. The offered shares can be existing, newly issued or a combination.
What are the main advantages of listing?
The main advantages of the public offering of shares include the optimization of the capital structure. In particular, raising new capital without jeopardizing the company's cash flow. That is, without a credit burden. In addition, after a successful listing, the company may proceed with a secondary subscription of shares, and thus raise additional capital. It thus serves as a "new liquid M&A currency". Many foreign companies also use admission to the stock exchange as an opportunity to involve management and employees in the form of employee shares. The public offering of shares is a way to increase prestige and build a brand or increase interest among job seekers. Last but not least, admission to the stock exchange brings the possibility of optimizing the capital structure and easier conversion thanks to the public listing of shares.
Does admission to the stock exchange also have disadvantages?
The very process of the company's IPO is time-consuming, financially and managerially demanding. Only those companies that are fully prepared will be able to take full advantage of all the possibilities of entering the stock exchange. Listing on the stock exchange also imposes new obligations on the company in the administration and management of the company, especially with regard to transparency. New investors with voting rights will also join the company with the subscription of shares.
How do I find out if my company is suitable for listing shares on the stock exchange?
There is no exact template that a company interested in IPO should fit into. The key to success is to arouse investor interest. They buy the "promise of future profits." Therefore, it must be an attractive, promising and understandable intention that can convince and attract investors. The company must be mature enough to be able to meet its obligations and be able to continue to cooperate and communicate with its investors on a regular basis.
What is the procedure if I am interested in entering the stock exchange?
The easiest way is to contact the Prague Stock Exchange and ask for an independent evaluation of whether your company is suitable for the primary public offering of shares. You can get an independent assessment by contacting us (contact details above) or by submitting a form (shown above).
What if my company is not big enough?
The START market is intended for smaller innovative companies with a value of CZK 25 million or more. You can also rank among the exceptional Czech companies with which you can grow. More information about START Market at www.pxstart.cz
Which stock exchange to choose?
Capital markets are globalized today and large institutional investors have access to all standard stock exchanges without distinction. The choice of market is therefore more a matter of rational consideration between the cost ratio, the quality of service and the aftercare that the company will receive from the stock exchange. Thanks to its high-quality and cost-effective service or connection with global institutional capital, the Prague Stock Exchange is a clear choice for Czech companies, albeit with global business.
Who will help me with the transaction?
The key entity is the IPO manager, typically an investment bank and other members of the stock exchange from the financial segment. The manager is the leader and coordinator of the entire external team. Determines the share price, the volume of shares subscribed and the target market. The right choice of the issue manager is key to a successful public offering of shares.
How to choose the right issue manager?
Before selecting a manager with whom the company will work closely on the public offering of shares, the company should have at least a general idea of which investors it wants to primarily address. The breadth and distribution of the primary offer is not affected by the reach of the chosen stock exchange, but by the possibility of presenting the issue manager (typically an investment bank). It can focus, for example, on local institutional investors, foreign institutional investors or retail. You can find the list of members of the Prague Stock Exchange at these pages in the „About the Market“ chapter..
Who determines the price of the company within the IPO?
The valuation of the company within the primary offer will be ensured by the IPO manager in close cooperation with the issuer. It is always a matter of finding the right compromise between the expectations of the company itself and potential investors. Determining the right price is absolutely key to a successful public offering of shares.
What information will I have to publish after a successful listing?
Investors invest their resources in the company and in return they want to be informed about significant events in the company. The basic information obligations arise from the law. In particular, it is a regular publication of economic results (frequency depends on the chosen market), annual reports and all information that may affect the value (price) of the company's shares.
Interest-free capital with freedom of disposal | ||||
Choice of level of control over the company | ||||
Risk dispersion and unlimited resources | ||||
Optimization of capital structure | ||||
Publicity and visibility | ||||
Employee shares: Can a small business go public? Read on... |
Yes, a company can go public using the internet, a process that has been facilitated by recent technological advances and regulatory changes. This approach typically involves one of the following methods:
1. **Direct Listing**: In a direct listing, a company can list its shares directly on a stock exchange without issuing new shares or using underwriters. This process is facilitated through an electronic trading platform. Companies like Spotify and Slack have successfully used direct listings. This method allows existing shareholders to sell their shares directly to new investors via the stock exchange, often with the help of online platforms.
2. **Online Platforms for IPOs**: Some companies use online platforms to manage parts of their IPO process. These platforms can help with tasks like gauging investor interest, distributing prospectuses, and even facilitating share subscriptions. While these platforms aid in the process, traditional elements like working with underwriters and meeting regulatory requirements still apply.
3. **Regulation A+ Offerings**: In the United States, Regulation A+ (part of the JOBS Act) allows smaller companies to offer and sell up to $50 million of securities in a 12-month period, subject to eligibility, disclosure, and reporting requirements. These offerings can be marketed and managed online, making it easier and more cost-effective for small to midsize companies to access public markets.
4. **Crowdfunding Platforms**: Equity crowdfunding platforms allow companies to raise capital by selling small amounts of equity to a large number of investors via the internet. This approach has been utilized by startups and small businesses, although it's different from a traditional IPO in terms of scale and regulatory oversight.
5. **SPACs and Online Mergers**: Special Purpose Acquisition Companies (SPACs) are another modern route to going public.
A SPAC is a shell company that raises funds through an IPO to acquire a private company, thereby taking it public.
Some aspects of this process, including investor outreach and the merger vote, can be conducted online.
While the internet and digital platforms offer innovative ways for companies to go public, it's important to note that traditional regulatory and legal processes still apply.
Companies must comply with securities laws, provide accurate financial disclosures, and work with regulatory bodies regardless of the method used. The internet primarily serves as a facilitator in these processes, offering efficiency, broader reach, and sometimes cost savings.