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УДК 338

DOI: https://doi.org/10.36887/2415-8453-2024-2-60

Anzin Roman,
Postgraduate, National Scientific Centre “Institute of agricultural economy”

JEL classification: D53, F36, G15; O16

The study aimed to determine the fundamentals of entering the stock market and the process of initial placement of shares of Ukrainian companies on such exchanges. The entry of companies to the capital market is a stage of expansion of production capacities, improvement of the company’s management system, the opening of new markets, the possibility of increasing investments in innovative activities, etc. The transition of national economies to an open global economy has led to the need for additional investment attraction not only within the country of the base of such a company but also on international capital markets. The most common option for obtaining additional financial capital is the initial issue (IPO) and the sale of company shares. The company is being transformed into a public or private joint-stock company. Ukrainian legislation has formed the relevant legal field within which the process of issuing and placing company shares takes place – the Law of Ukraine “On Securities and the Stock Market,” “On Capital Markets and Organized Commodity Markets,” etc.; The decision of the State Securities and Stock Market Commission – “Procedure for transferring bearer shares issued by the issuer in documentary form into registered shares. “Regarding the foreign practice of regulating the IPO process, we note that each country has its requirements, but in most cases, they are similar in content. The process of placement of securities on the open market is accompanied by sufficiently large risks, which become the critical factor that forces Ukrainian companies to refuse placement on international stock markets. The IPO process includes the following stages: preliminary, preparatory, primary, and post-placement. Underwriting allows you to minimize IPO risks. An investment bank that helps a company list on the stock exchange assumes certain obligations regarding this placement and guarantees the issuer its redemption for further sale among investors.

Keywords: investment, securities, shares, IPO, risks, company.

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The article was received 29.03.2024

Quote article, APA style

Anzin R. 29.03.2024. Initial public offering of shares as a tool for attracting financial resources by the company. West Ukrainian National University. 2024. №2. 350-357 pp. https://doi.org/10.36887/2415-8453-2024-2-60

Quote article, MLA style

Anzin R. Initial public offering of shares as a tool for attracting financial resources by the company. West Ukrainian National University. 29.03.2024. https://doi.org/10.36887/2415-8453-2024-2-60