IC KOIN LLC offers an efficient alternative to traditional sources of financing investment programs to organizations needing long-term resources, namely services related to placing and servicing bonded loans on the Russian market.
Advantages of issuing bonds:
- opportunity to attract greater and cheaper financial resources as compared to bank credits or bill loans;
- absence of any need to provide a pledge;
- issue of bonds is an important tool to create a public credit history and form a positive image for your company;
- issue of a bonded loan clears the way for further greater loans on the domestic and international markets .
IC KOIN LLC offers a full range of services at all stages of bonded loans taking part in the preparation and expert assessment of your bonded loan including:
- defining the structure of the issue;
- consulting the issuer on the technology of issuing and placing bonds;
- working with a broad range of investors;
- taking measures related to the initial public offering on MICEX .
IPO is an alternative to cheap investments.
IPO does not only mean alternative crediting for your enterprise for business development purposes but also an opportunity for shareholders to obtain additional (maximum) ‘promotional profit’ – the difference between the total amount from sales of shares and capital actually invested in the enterprise.
There are the following categories of IPOs by their method:
- Public (at a fixed price) – the investment company stops registering applications when the demand threshold is achieved or upon the issuer's request (this prevents from getting maximum profit and there are risks related to inadequate preliminary assessment of the demand).
- Auction – political offering (in fact, reprivatization).
- Portfolio (bid book) formation – the range of bidding prices for investors is formed.
The following is needed for IPO:
- A clear organizational structure of the enterprise and availability of corporate management (mechanisms to ensure the management's responsibility to the Board of Directors and responsibility of the Board of Directors, in its turn, to shareholders) enable the staff to perform their functions in the best possible way preserving the balance of each other's interests.
- Appraisal of the financial and economic standing (restructuring of assets).
- Well-balanced structure of assets (in a well-known and controllable territory).
- Information transparency (financial transparency).
- It is possible to provide for bonded loans for the purposes of assessing the interest in business.
The issuer must do the following at the preparatory stage:
- Take all measures to eliminate any shortcomings revealed in the course of preliminary appraisal.
- Hold a tender among IPO organizers.
- Select participants, partners, consultants and brokers.
- Select a trading site and underwriter (to purchase the entire issue from the issuer).
- Agree upon the action plan and IPO configuration.
- Publish the securities prospectus (formal decision of the issuer’s management and control bodies to comply with such procedures as granting the preemptive right to the shareholders, etc.).
- Prepare the Investment Memorandum – a document for investors (comprising such information as price per share, number of shares, purpose of using the funds, dividend payment policy, business plan, etc.).
- Organize an advertising campaign to increase interest in the offered securities.
Summarizing the results for former shareholders of the company means successful compliance with applications filed by the issuer’s investors. The stability of the price per share under the agreement signed between the underwriter and issuer will last for some time more (about a month), and then the security begins circulation irrespective of business assets.са.
Being a professional participant of the securities market, IC KOIN LLC is ready to take responsibility within the structure of partnership relations for the following issues:
- Coordination of actions of the issuer and advisers
- Development of the investment brand
- Coordination of work with exchanges and depositaries
- Transaction structuring
- Independent services: complex business appraisal, audit, expert assessment of the company’s financial standing and analytical coverage
- Marketing campaign and PR support for the project
- Legal opinions
Organization of public offering involves a great number of advisers whose work must be coordinated. Of course, every adviser must mind its own business but availability of several organizers has certain advantages. Underwriters (investment banks) are characterized by a non-uniform client base and often by geographic localization of their activities. At the same time, more comprehensive information concerning the demand and broader range of investors can contribute to successful IPO.
IC KOIN LLC will help prepare a competitive offer based on the current economic requirements opening new horizons for your business by means of IPO.