Equity Direct Distribution for Issuers
During the listing process, the Issuer can ask Borsa Italiana to use its trading platform to facilitate the distribution of shares offered in the Initial Public Offering to retail investors.
Why choose Equity Direct Distribution for IPO
- Efficient access to the retail public
Enables access to a wider audience of retail investors.
- Access for selected investor categories
Efficiently opens up capital to specific categories, such as family & friends, employees, clients, etc.
- Fully integrated into the Euronext infrastructure
Leverage the infrastructure already in place for daily trading of shares or for the subscription of government bonds and other securities.
- Complementary to the traditional process
Complements, rather than replaces the bookbuilding process, broadening the potential investor base.
- Control over retail allocation
In the event of over-subscription, allocation is automated, as provided for in the Prospectus/Information Document.
- Institutional and innovative image
Strengthens the issuer’s credibility and visibility among investors and the media.
Allows the development of dedicated distribution plans for family & friends, employees and targeted stakeholders.
How Equity Direct Distribution works for companies
The Issuer must notify Borsa Italiana of the name of the intermediary appointed to sell the shares on the market and the main characteristics of the offer as set out in the Prospectus or Admission Document.
The procedure for Direct Distribution of Shares to retail investors will take place in parallel with the bookbuilding phase, which is the share offering procedure reserved for institutional investors.
During the retail distribution phase, the Issuer will be informed of the progress of subscriptions and may modify the quantity of shares to be offered, in accordance with the Prospectus or Admission Document.
At the end of the offer period, the Issuer, supported by the appointed intermediary and the placement manager, will determine the quantity of shares to be allocated to institutional investors, the quantity to be allocated to retail investors, and the offer price.
Once the offer phase is completed and a regular free float has been verified, Borsa Italiana will authorise the start of trading and the company will be admitted to the market.
Contacts
For further information about the Equity Direct Distribution for IPO service, contact the Team at: borsaitalianaprimarymarkets@euronext.com