Listing on Frankfurt Stock Exchange Process
A flotation starts from the decision to go public until the admission to listing. Issuers must go through number of processes. These include: recruiting appropriate partners, checking whether the requirements are met through due diligence, the issuing concept and the equity story; setting up an efficient corporate organization
1. Prelisting Stage
- Recruiting advisors: Swiss Financial Company & Trust SA
- Recruiting a syndicate bank
The Company presents itself to various banks. The Banks rate the company and submit the offer to the IPO candidate.
- Meeting legal requirements for the IPO
- Strategy observation
The company defines its strategy for the IPO in conjunction with its advisors and syndicate bank:
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- Determination of the transaction structure (decisions about capital increase)
- Deliberations about the motivation behind the IPO
- Deliberation about the future use of capital market
2. Prepare Business Plan and IPO Strategy
- Administration of registered shares
- Select the admission segment: First Quotation Board
- Prepare a liquidity provider in trading:
- Prepare Equity Story
Due Diligence Process
Prepare prospectus
This prospectus must contain all information necessary for investors to determine if they will subscribe to the listing.
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3. Realization and Marketing
- Brief analysts
- Guarantee and publish research coverage
- Prospectus
- Application Form
- Contact investors
- Prepare IR activities ( Establish IR department; draft of a catalogue)
4. Price Determination
Price determination and delivery process
- Fixed price or book building process
- Preferred subscription for private investors
First Price Determination
- Electronic Price Determination
- Price determination using market makers
First trading day
- Media presence on the first day of trading
- Price stabilization and green shoe option
Please, find out our publication about Listing on Frankfurt Stock Exchange.
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