One of the methods of placing major securities is issue. It is a set of successive actions of the issuer with the aim of placing securities.
Instructions
Step 1
The purpose of the issue is to attract additional financial resources. It also takes place during the establishment of a joint-stock company, in the event of a change in the par value of previously issued securities or when issuing securities with new properties.
Step 2
Emission can be primary and subsequent, as well as open and closed. Open is also called public. In this case, the securities are placed among an unlimited number of investors, it is accompanied by an official public announcement, with the disclosure of information. In the case of a closed issue, shares or bonds are offered to a predetermined circle of persons.
Step 3
Usually carried out with the involvement of professional participants, called underwriters. They serve all its stages from selection of parameters to placement among investors.
Step 4
The issuance procedure includes the following steps:
- decision-making;
- state registration of the issue;
- production of certificates of a security, in the case of its documentary form;
- placement of a security;
- registration of the report on the results of the issue;
- making the necessary changes to the charter of the company when issuing shares.
Step 5
In the case of an open subscription or closed, if the number of investors exceeds 500, the procedure additionally includes:
- registration of the prospectus;
- disclosure of information contained in the prospectus;
- disclosure of information contained in the report on the results of the issue.
Step 6
Before state registration, any actions with securities, including advertising, are prohibited.
Step 7
The most important point for the issuer is the placement of the issued securities. It is carried out at the issue price. The procedure for its determination must be recorded in the issue prospectus. It can change depending on market conditions. The issue price of a share cannot be lower than its par value, but it can be higher than it. In the case of a bond, the offering price can be anything.
