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The organization of public placement of bonds (IPO/initial public offering)

IPO (Initial Public Offering) means a primary public placement of shares, which attracts financing, due to the company’s first appearance on the open market, and the placement of shares among a wide range of investors.

Nowadays, many Russian companies are reconsidering their development priorities: a gradual transition is now taking place from a financial flow control strategy to a strategy directed towards capitalization growth. This is due to the fact that, on one hand, many Russian companies have exhausted the limit of their own capital for attracting debt financing, and are no longer capable of further aggressive development using only loan facilities. On the other hand, owners are aiming to realize minority shareholdings, thus, fixing a return and decreasing the risk of personal investment.

Company objectives in IPO:

  • Attracting investment for an unlimited period of time
  • Withdrawal/partial withdrawal of one or several shareholders
  • Smaller cost of attracting debt resources
  • Obtaining a market evaluation of the business, increase of business reputation
  • Increase of shares liquidity, the possibility of their use in M&A transactions
  • Protection from any possible acquisition (turnover), from "nationalization"

In the future, the use of public instruments allow the company to offer its product lines to the market: from debt instruments (bonds and commercial papers in the form of bills) to ordinary and preferred shares, and then to convertible and derivative instruments based on the primary securities of the issuer.

Our company specialists will be pleased to assist you in selecting an optimal structure for transactions, and IPO realization.

For more detailed information contact the Head of the department on work with corporate clients.