In the conditions of weak share market and high credit rates in Ukraine, bringing company to the world share market is one of the most effective means to attract investments.
Advantages of attracting IPO investments by means of entering international fund market
- Company higher market estimation compared to Ukraine,
- Access to share markets hundred times more capital-intensive than Ukrainian one,
- Higher liquidity of shares, their use as securities and as a mean of exchange to other companies' shares,
- Possibility to sell shares in small parties on exchange to big amount of investors, private investors, share investment funds,
- Cash assets obtained don't make debts, there's no need to pay percents.
- Company image improvement, credit rating resulting in getting cheaper crediting compared to competitors,
- Higher economical security of business owners acquired western public status.
Requirements to companies who want tp make part of initial public offering IPO
- Business transparency and legacy,
- Absence of concealed liabilities,
- Qualified management with clear strategy and company mission,
- To demonstrate growth of financial indexes and desire to increase its market share.
- To have assets and / or year turnover equal to 1 mln. USD or higher.
- To act in attractive for analysts and oriented investors economical sectors and for high-technology companies – to possess expertly supported know-how.
- Availability of liquid balance, accounts payable within reasonable limits.
- To pass audit according to the international accounting standards and reporting, to have reporting drawn up according to IAS or GAAP.
Means of placing securities
Public company may attract joint-stock financing using following essential mechanisms:
- Private placement,
- Public placement.
AIM. Alternative investment market of the LSE. Carrying out IPO on the AIM
Alternative investment market (“AIM”) – is a market of London stock exchange created for small world businesses and emerging ones.
AIM rights of access criteria are less strict compared to demands stated to companies entering Official list of companies with their stocks on London stock exchange. For example to enter AIM it's not necessary to have experience and proofs of stock trades for the last three years or its minimal capital stock realization.
Upon its creation in 1995 over 1600 companies used AIM, and stocks to the amount of 30 milliard USD were sold. Total market capitalization of companies with their stocks presently at AIM is over 70 milliard USD.
Placing stocks at AIM provides companies with a possibility to find additional funds for financing goals stated in strategic plans. Goals are based on company growth. Besides, existing shareholders have possibility to sell by good price only some part of available stock. At this company management will keep saving management control.
Stock rate at AIM helps company trademark reconciliation, its reputation at world market and may strengthen its financial reputation. Company gets possibility to acquire other companies' stocks to use its own stocks instead of monetary assets.
The Audit company “Glavbuh-audit” with the aid of its partners in London is ready to provide services of your company alternative entering London investment market or to represent your company among big quantity of English private investment funds.
