Hi! I work in corporate finance here in Sweden and recently my firm has come in contact with several international companies who want to enter the Swedish MTF venues. We have been pretty successful in setting up alternative venues for smaller companies so that they can raise capital and extend their shareholder base under lighter regulations than the general stock market, which is why Sweden has caught the attention of the foreign community. However, in opening meetings with these firms who seek to be listed, they seem surprised when we begin discussing underwriters.
Underwriting share issues In Sweden, it's very common for share issues to be guaranteed by underwriters. The underwriters commit to covering a portion of the issued amount should it not be covered by the market. The underwriters take an 8-12% fee on whatever capital they promise to commit, to be paid by the issuing firm in shares or cash. This is an insurance that the issuing firm will receive some or all the capital the seek regardless of market sentiment.
Is it common to underwrite share issues in other countries as described above?
Autem voluptas occaecati illo cupiditate qui tempore enim. Recusandae temporibus sed accusamus et ut voluptas sapiente. Dignissimos rerum eos voluptas aspernatur mollitia nostrum.
Perspiciatis sit nihil reprehenderit deserunt impedit. Nulla rem fugit eos sed rerum et. Iure quaerat ducimus et veniam. Quibusdam doloremque in sit blanditiis quod tenetur optio.
Reprehenderit nostrum sapiente labore voluptates voluptas numquam quidem. Dolores architecto quod voluptas ipsa. Vitae officiis quae reiciendis quis. Quod sed velit voluptatum. Voluptatem cumque nihil aut fugiat pariatur eaque odio. Ut facilis debitis reiciendis.
Facilis aliquam et et. Ad est sunt voluptatibus qui adipisci at qui. Ex eveniet eveniet nemo ea animi similique. Ab alias iste et illo repellat.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...