Going public


Going public - putting the company on the stock exchange and selling shares on the secondary market. This is the classic way of disinvesting through venture capital funds.

Venture capital funds invest in entities not listed on the securities market, in non-public companies. In Poland, the subject of their interest are usually companies operating in the form of sp. Z o.o. These are non-public companies, therefore one of the possibilities to exit the fund from the investment is to "publicize" the company by introducing its shares to trading on the stock exchange or other over-the-counter regulated market.

In Poland, the stock exchange may only be listed by joint-stock companies, possibly joint-stock and joint-stock companies, so the first step in going public should be to convert the company's existing legal form into a joint stock company. To this end, the company's articles of association and internal regulations should be adjusted to the requirements of the capital market and corporate governance.

When deciding to exit an investment via the WSE, the fund may choose one of two pathways that affect the company primarily:

The disinvestment through the WSE does not have to cover the entire stake held by the fund, so the process may be phased. With respect to companies with high growth prospects, the fund may only offer a part of the shares to the public and the remaining shares in subsequent stock transactions in the future when the expected value of the stock is expected to increase. The process then includes:

Advantages going public Wady going public Bibliography

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