AAA and OKD will make investors happy

Literally, the boom in the introduction of new stocks occurred this year in the global stock markets. Unfortunately, this is not the case with the domestic stock exchange. With the fall of autumn, the situation will change.

Yes, even on the domestic stock exchange there was a flash for better time. Although we have not been able to issue a new issue this year, it is very likely that by the end of the year, five new titles will appear on the stock exchange, as Petr PSlic, the CEO of the PSE, predicted. According to the representative of Patria Finance, it will certainly be more than one, but not ten, from the field of retail, primary sources and at least two representatives from the real estate sector.

One of the hottest candidates (which may not be the first in the end), representing the mentioned retail, is the used car dealer, AAA Auto. It would like to raise funds on the stock exchange for expansion into the entry-level European markets and, in addition to the Czech Republic, Slovakia, Poland, Hungary and Romania, it wants to enter the markets in Bulgaria, Ukraine or Turkey. The company would like to list its shares on the Hungarian stock exchange in addition to the stock market crash.

New World Resources (NWR), which is currently 100% owned by OKD, is also considering full listing. By acquiring shares on the London and Prague stock exchanges, the company wants to be tied to the implementation of acquisitions in the Central European region, especially in Poland and Ukraine. Depending on the scope of the completed acquisitions, the company will launch only existing shares or issue new shares. The IPO was originally scheduled to be implemented in May, but will eventually take place in the autumn.

From below, it also took a direct issue of shares in the development company CTP Invest, domiciled in the Netherlands, focusing its activities on real estate and real estate industry (and as one of the young people focusing on projects outside the capital). The original filling of the June term is also a phenomenon as real and in the autumn of this year.

Other adepts mentioned in connection with the primary letter of the event are, for example, the development company FINEP or the logistics company CS Cargo, which intended to list both new shares and existing shares on the stock exchange.

Unlike the domestic stock exchange, the foreign capital market can attract new companies in the world. In the second quarter of this year alone, 531 primary writings took place in the world, with a total volume of USD 88 billion. Companies on the stock exchanges in the BRIC countries (Brazil, Russia, India and the like) are very interested in the placement of new events, a slightly surprising leader in the IPO bag was the stock exchange in Australia (ASX) with 66 issues.

The largest volume was subscribed for on the London Stock Exchange, so the largest title in Europe was subscribed for. It is followed by Poland with twenty primary issues in Europe (last year it was 37 primary issues, in the most recent forecasts for this year there were even hundreds of new events).

The Warsaw Stock Exchange is often twice as common as the stock exchange (although the PSE itself is practically silent for the fact that our companies are not able or willing to enter the stock exchange). The functioning and development of the capital market in Poland is particularly important, as well as more than 90 percent of the stock market. For us, the stt’s effort to support the entry of shares into the capital market is practically zero, which is shown in the privatization process, when the stt prefers to sell the company’s shares to a large investor, rather than placing them on the stock exchange. In addition, the salary is that the income from sales through the stock exchange is higher than at the first sale. Our representatives could take an example from Hungary, where the Ministry of Economy and Transport increases the motivation of companies with an IPO tender, respectively. a grant in the middle of the funds associated with the listed action on the stock exchange (more HERE).

Unfortunately, not only the approach of the state is nice when increasing the number of primary events in our market. One of the main reasons for domestic companies not wanting to enter the domestic stock exchange is the very bad experience from the past in the form of privatization coupons, when a large number of companies got on the stock exchange, which practically did not even want to be there. The lack of an investor for a big title is not the right attraction for companies. Companies that could enter the stock market under normal conditions are afraid that they will not be attractive enough for investors (they are small or almost not talked about at all), which has a negative impact on their share prices. Companies with relatively small emissions (up to EUR 25 million) also enter the Polish market, which Czech companies are particularly struggling with. Much in the willingness to enter the Polish capital market is also shown by foreign companies. This year alone, five foreign companies listed their shares on the Warsaw Stock Exchange.

A bad business card, which operates on many domestic companies, is also unsatisfactory legislation. This fact leads to the fact that companies with the potential to enter the stock exchange like to establish new companies with a domicile outside the R, so as to avoid domestic courts and not have to enter their securities in the Center of Securities (this is the case for virtually all recent and upcoming primary issues). on the PSE).

Dalal factor, which negatively affects the number of new issues on the domestic stock exchange, is the fact that companies that are considering IPO, although they have the prerequisites to enter the stock market (good results, rapid development, their sector is overall, management is able, position on the market they are stable and want to expand), but they are practically not ready for IPOs. The most common problem is the fragmentation of the corporate structure, which includes companies with a lot of tangled assets, which has made the situation in companies known to be confusing and certainly not a sign of reliability for investors. It can easily take a year for such a company to perform such an audit and reconcile ethnicity with international ethnic standards (according to the degree of “neglect” and the size of the company). And then I come to the IPO process itself, which takes a few months.

One of the risks that can currently be slowed down by the expected primary letters may be the current situation on the capital markets in the world. Uncertainty causes the investor to know the outside volatility in the markets, which could affect the setting of emission prices. You can then be nothing, not the company originally expected. According to the representatives of Patria Finance, this situation may have practically no effect on the mentioned IPO adepts. The change to the region of Central and Entrance Europe, the volume of subscribed funds (EUR 40,150 million) and still relatively high P / E for domestic events – these are the strongest arguments that, according to Mr. Patria, should not jeopardize the success of future issues of shares on the PSE. .

Some domestic companies are afraid that they are not known to the public, and their shares will not be much interested. The IPO itself is a bag guaranteed by advertising and a guarantee that the investor and the public will learn about the company. Literally, the hungry investor (both large and retail) currently practically guarantees that the action on the market should be successful.

The second extreme may be the situation when the investor knows the company, but it is very important to the public (for example, AAA Auto). Improving its image is, of course, a long-term process, but for the investors themselves, the most important indicator is whether to buy the company or not, its results. And you can also be very good in the public and (in the case of AAA Auto it is a salary), which should support the show on the stock exchange.

In a similar situation, for example, there may be companies that exclude from their portfolios investors professing socially responsible principles in investment (manufacturers of weapons, alcohol, tobacco companies, companies making gambling, etc.). But that doesn’t mean they can’t. In addition, the IPO process itself will literally teach society in the right light, and there should be no lack of transparency.

Nen teba se bt
The launch of new events on the market is a few significant benefits for the company pin. One of the main ones is the possibility of obtaining cheap cash without the owners of the company losing the opportunity to follow the company. Even though he used to be a 100% owner, he is not the sole owner of the company, a small share among a large number of investors (those who buy large shares for profit, not because of the opportunity to join the company) still allows him to control the company.

The motive is enhanced by the good name of the company, which is made more transparent due to the informed duty, openness and written supervision. This raises the court not only of investors, but also of business partners, suppliers or banks, who are then more accommodating when providing incl. The company’s shares, which are sufficiently liquid (which will be ensured by the first trader on the stock exchange), are also very good currency and a motivated means for the management of the company, which strives for the best possible results of the company.

A primary issue may be suitable for a business owner who wants to monetize a certain amount of stock, but does not want to sell the company to one large investor, or a suitable successor from his family. By selling a certain amount of the event, you will get cash, keep a certain amount in the company, and moreover, you do not even have to travel to its wife.

Heath IM Provement