The process for a first admission to trading of shares (generally known by the English acronym “IPO” or Initial Public Offering) requires some preparation. The level of demand and planning required for an IPO depends on a number of factors relating to the issuer itself, such as the stage of development its Company is at, its corporate governance model and internal organisation, the transaction itself – such as the characteristics and format of the offer that precedes the admission to trading (“the Offer”), the admission market, and also the type of presentation document that needs to be prepared to make available to investors or additional information that the Company wishes to make available.<\/p>\n\n\n\n
The Offer and\/or Listing presentation document can be a Prospectus drafted in accordance with the EU legislation (\u201cEU Prospectus\u201d) or an Information Document (“Information Document”) and aim to support investors in making an informed decision on whether to invest in the Company\u2019s shares. Accordingly, it is necessary to ensure sufficient transparency and protection to the potential investors.<\/p>\n\n\n\n
The preparation of an Offer addressed to the general public (“Public Offer”) that has as a presentation document an EU Prospectus is, on one hand, more challenging than it would otherwise be for an Offer that only requires the disclosure of an Information Document, but, on the other hand, the former allows to reach easily more investors and higher liquidity. <\/p>\n\n\n\n
Drafting a Prospectus may be more demanding but not necessarily a burden: the Prospectus is subject to approval by the CMVM (or \u201cRegulator”), which provides, from the beginning, the proper support to potential new issuers. The CMVM adopts agile, simplified and timely review and approval procedures as part of its market development objective.<\/p>\n\n\n\n
An EU Prospectus may benefit of a higher level of confidence from the investors.<\/p>\n\n\n\n
In certain circumstances the preparation of an EU Prospectus is a mandatory requirement for the Offer. The main characteristics that determine the need to prepare and disclose a Prospectus are:<\/p>\n\n\n