Information for companies
Admission to the stock exchange can be particularly attractive to those companies that need money for business development and is in many respects a viable alternative to bank financing and private equity investment.
Investors who buy company stocks, through the stock exchange, co-share the potential success and failures with the company and its owners.
Entering the stock market gives the company the international status of a listed company. Among other things, it brings better conditions in bank financing thanks to the diversification of sources, publicity, and a higher chance of winning new contracts.
We consider the results of the Pilulka.cz IPO as a huge success.
Being listed on the stock exchange increases the company’s credibility in business relations, especially abroad. In addition to new capital, the listing also brought us a lot of new experience.
For me, IPO meant that my dream came true. Also, it was access to an alternative method of financing, PR awareness beyond our clients, and greater prestige of our company.
As a publicly traded company, Fillamentum has a significantly better negotiating position with the bank, and interest rates for corporate financing have fallen from 6% to 2%.
Since entering the stock exchange, we enjoy greater interest and seriousness in dealings with the bank and some business partners, as well as the professional public. Admission to the Prague Stock Exchange has brought us the funds to develop the company, greater interest on the part of our bank, and a positive awareness among stakeholders in general.
Every publicly traded company has a higher level of prestige and credibility. In the world of international trade, this can be key.
Thanks to the stock exchange, we were able to increase our working capital and strengthen our distribution network.
How does the subscription of shares on the PX Start market work?
about 2 months
It starts by evaluating whether the listing makes sense for your company.
- Estimation of the market value of the company
- Change of legal form (if necessary)
- Dematerialization of shares
- Selection of IPO advisors
about 2 months
It consists mainly in the preparation of all the documents necessary for the IPO.
- Signing of a memorandum on the admission of shares to the stock exchange
- Preparation of the prospectus and a due diligence report
- Company analysis
- Setting up an IPO strategy
- Roadshow preparation
about 1 month
The actual subscription of shares in the PX Start market consists of the following steps.
- Admission application form
- Marketing roadshow
- Subscription of shares (minimum subscription window: 14 days)
- End of subscription
- Entry into the PX Start stock market
The PX Start market is a market suited to small innovative companies. There are no exact criteria that a candidate for an IPO should meet. The success or failure of a company during the IPO always depends on the interest shown by investors. Therefore, it must be an attractive, promising, and straightforward business that can convince and attract investors. The company must be mature enough to meet its obligations and to cooperate and communicate with new investors (shareholders) on a regular basis. The presentation of the company on START Days is a crucial part of the communication between the issuer and investors. It is an opportunity to acquaint investors with the results in the recent period. Investors can ask the company’s representatives questions, as is common, for example, at shareholders’ meetings. Everything is uploaded, archived, and available online on the stock exchange website. The START Day is held twice a year on pre-scheduled dates.
An analytical report is another regular source of information. When entering the market, each issuer must provide an analytical report, which has to be updated annually by an independent analyst. The analytical reports can be very different, as there is no prescribed scope, and the content is at the discretion of the analyst. Some issuers may have analytical reports by more than one analyst.
The annual report must be published on time as required by the law, and any information relevant to the stock price must be disclosed during the year. The issuer is obliged to publish all this information in the investor section on its website.
The cost of an IPO largely depends on the size of the company and its current situation and structure. In general, the fees will amount to a few percentage points of the required (subscribed) amount.
Steps such as preparing the company for public trading, communication with potential investors, and the coordination of the entire process are very demanding in terms of organization, and they require know-how and expertise. The advisor can arrange everything necessary so that the company’s management is not overloaded and distracted from its regular duties.
On our website, you will find a list of advisors, analysts, and law firms we cooperate with. All these service providers are highly professional, and most of them have already worked on a number of IPO transactions.
Choose an experienced advisor from the list on our website.
The choice of market affects the composition of potential investors (shareholders). Mainly local investors (individual and institutional, i.e. funds) operate on the PX Start market. If the company has the ambition to appeal to international investors as well, it should consider the regulated markets of the Prague Stock Exchange, where foreign institutions predominate. The size of the company is also related to this – if the total value of the company amounts to several billion CZK, a regulated market is a more suitable choice for an IPO.
A share price will be based on the valuation of the company which will be established by an advisor in cooperation with you.
The amount of raised capital will depend on the interest shown by investors. If your company appeals to investors who find the price for a share in your company attractive, there is no reason why the IPO should not be successful.
Yes, it is. The person who buys the shares as part of the IPO is also obliged to pay for them.