Legal and Economic Aspects of Initial Public Offering (Neumahr, D.) Abstract This diploma thesis deals with initial public offering (IPO) of shares from both legal and economic perspective. The thesis is divided into three basic parts. The goal of the first part is to explain the process of IPO, its development and each institution related to the topic. Followed by part which is dedicated to legal framework in the European Union and each phase of the process is described from the viewpoint of Czech law. Second part aims to clarify basic economic advantages as well as disadvantages of initial public offering concerning the company and propose possible alternatives. Final part seeks to provide a case study of the process on the Czech and the American capital market. The purpose of my thesis was to explain what an initial public offering is, what are its upsides and downsides and describe in detail the whole process which companies have to undergo before they can publicly offer their shares and before they are admitted to the capital market. Throughout the thesis I examine the development of European law regarding IPO and I marginally try to compare it to American law. In the final case studies, concrete steps during the entire process are demonstrated on the examples of practice.

Duties of so-called quoted joint stock companies Thesis author: Mgr. Marek Novotný Thesis supervisor: prof. JUDr. Stanislava Černá, CSc. This thesis is concerned with the regulation of duties of quoted joint stock companies (especially the duty of information) and its various institutes. The purpose of this thesis is to describe the legislation in this area of law and its development, with emphasis on the transposition of European legislation, and subject them to critical evaluation. In the first chapter the theoretical framework is defined by describing key legal concepts (the term "quoted joint stock company", "regulated markets") and the development of the most important legal regulation in this area - Act No. 256/2004 Coll., on Business Activities on the Capital Market. The second chapter is devoted to regulated markets and subject information duty. The third chapter deals with the admission of a security to trading on a regulated market and associated initial information duty of joint stock company, which is willing to become quoted. I describe mainly the prospectus and its essential elements. In the fourth chapter I analyze in detail the different types of regular (periodic) information duties, which are the annual report, semi-annual report and interim report. The following fifth chapter is...

Application problems of EU prospectus regulation in the Czech Republic Abstract The subject matter of this thesis is the analysis of certain application problems that are associated with the regulation of the prospectus at EU level, represented mainly by the relatively recently adopted so-called "Prospectus Regulation". The thesis aims to identify the main problems that may arise from the EU regulation of the prospectus in the case of its application in the Czech Republic. Following the identification of these problems, the subject of this thesis is to analyze these problems in terms of their severity, consequences for capital market participants, causes and possible solutions. The thesis is divided into five parts. The first part defines the definition of the term prospectus, its main requirements from a practical point of view, a brief history of securities regulation and the prospectus as a means of regulating the offering of securities to the public and the analysis of the importance of public offering of securities today. The second part focuses on the prospectus approval process in the Czech Republic, including a brief description of this process and an analysis of the application problems associated with this process. The third part of this work analyzes the problems associated with the uncertainty...

in English This diploma thesis explores the ongoing reform of the prospectus regime in the European Union. On 30 November 2015, the European Commission presented a proposal for a new regulation, which is to replace the current so-called Prospectus Directive. The primary aim of this thesis is determine the shortcomings of the current prospectus regime and to critically analyze the proposal in order to determine, whether it addresses these shortcomings and whether it improves the prospectus regime in general. The thesis consists of three main parts: the first introduces the prospectus, its characteristics and current regulation in the EU; the second explores and analyses the proposal itself and makes conclusions on the proposed changes; the third and final part explores the topic of prospectus liability and conflict-of-law rules. Based on the conducted research I arrive at the conclusion that the biggest issues of the current prospectus regime are the high costs connect to the preparation of a prospectus, inflexible disclosure requirements for certain types of issuers, ineffective retail investor protection and diverging implementation of the Prospectus Directive across EU member states. While the European Commission's proposal addresses most of these shortcomings and certainly represents an...

Idag omfattar det skadeståndsrättsliga ansvaret för prospekt endast organledamöterna enligt regleringen i ABL. Frågan om ett utvidgat prospektansvar har genom en rapport från Finansinspektionen i september år 2021 fått ny aktualitet. Saken har varit flitigt diskuterad och har vid två tillfällen kulminerat och resulterat i konkreta lagförslag år 2005 och år 2013. Litteraturen som behandlar prospektansvar är omfattande och därav finns ett behov av att systematisera de argument som präglar den juridiska diskussionen. I uppsatsen har argumenten kategoristerats, systematiserats och analyserats i syfte kunna besvara om prospektansvaret bör utvidgas och hur en sådan utvidgning bör utformas. Kategorisering av de argument som använts i den juridiska debatten har i uppsatsen resulterat i fem huvudargument. Argumenten består av förtroendeargumentet, träffsäkerhetsargumentet, harmoniseringsargumentet samt investerarskyddsargumentet och borgenärsskyddsargumentet. Utredningen och analysen av de fem huvudkategorierna visar att övervägande skäl talar för att prospektansvaret bör utvidgas, men att det risker att utvidgningen inte blir ändamålsenlig om utformningen av ett sådant ansvar blir bristfällig. Därmed ligger samtliga fem huvudargument till grund för hur prospektansvaret bör utformas. I uppsatsen utreds särskilt vilket orsakskrav och beviskrav som bör råda, hur ansvarsfördelningen bör se ut mellan bolag och ansvariga organledamöter samt hur den ersättningsberättigade kretsen bör bestämmas. Efter avvägning av de juridiska argumenten föreslås i uppsatsen ett utvidgat prospektansvar. Ansvaret är utformat för att svenskt prospektansvar ska harmoniseras med andra länders reglering på området, för att förtroendet ska upprätthållas för kapitalmarknaden, för att ansvaret av aktörerna på kapitalmarknaden ska anses träffsäkert och för att det ska råda en balans mellan principen om borgenärsskydd och principen om investerarskydd.

My thesis deals with analyses of returns of IPO’s in the Czech capital market. The theoretical section of the thesis contains of circumscription of main terms and methodics for preparations and realizations of IPO. In the analytical section these theoretical findings are applied. This thesis should bring realistic view of returns of IPO’s for investors and evaluate present trends on IPO market.

Background: A public offering or "Initial Public Offering" means that a company is transferred from being unlisted to trading on a stock exchange. When a company is listed, the company needs to establish a prospectus. This document is meant to give potential investors information about the operations in the company with both historical financial data and more descriptive information. The prospectus should therefore contain all necessary information needed to make a well-founded assessment about the IPO. Historically IPOs have tended to overperform in the short term and have an underperformance in the long run compared with already listed companies. Purpose: The purpose of the study was to identify the general return patterns for IPOs in Sweden in both short-term and in the long run. The study also aims to investigate whether the company's prospectus published in connection with the IPO can explain these yield patterns. Methodology: The general return patterns have been calculated using the Buy and Hold Abnormal Return (BHAR) and Cumulative Abnormal Return (CAR) methods. The raw returns shown by the IPOs have been adjusted to the chosen reference index to determine whether an over- or underperformance has taken place. In addition, several multiple regressions have been conducted to determine whether selected variables can explain the abnormal return shown by IPOs. Conclusion: The study results shows that the initial return on the first day of the 2007-2014 period was an average of 2.82% for the study's selection of 45 public offerings from Stockholmsbörsen and First North. The IPOs showed a negative trend with an underperformance in the first three months. The result for the short term is thus not consistent with previous research in IPOs. In the long run, however, the study's selection shows an underperformance of -12.85% measured with BHAR and -24.13% with CAR. This result is consistent with previous studies in other markets. Furthermore, only one of the selected variables, the initial return, could to some extent (16.8%) explain the abnormal return for the first month. The other variables were not statistically significant in any of the studied periods. / Bakgrund: En börsintroduktion eller "Initial Public Offering" innebär att ett företag övergår från att vara onoterad till att handlas på en aktiebörs. I samband med att ett företag börsnoteras behöver företaget upprätta ett prospekt. Detta dokument ska ge potentiella investerare information om verksamheten av både beskrivande kvalitet och historiska finansiella data som kan kvantifieras av investeraren. Ett prospekt bör således innehålla all nödvändig information för att göra en välgrundad bedömning. Vidare har börsintroduktioner historiskt visat att dessa tenderar att överprestera på kort sikt och underpresterar på lång sikt jämfört med redan börsnoterade företag. Syfte: Syftet med studien var att identifiera generella avkastningsmönster för börsintroduktioner på kort- och lång sikt i Sverige. Studien ämnar även att undersöka om företagets prospekt som publiceras i samband med börsintroduktionen kan förklara dessa avkastningsmönster. Metod: De generella avkastningsmönstrena har beräknats med hjälp av metoden Buy and Hold Abnormal Return (BHAR) och Cumulative Abnormal Return (CAR). Avkastningen som börsintroduktionerna uppvisar har justerats till valt referensindex för att avgöra huruvida en över- eller underprestation har skett. Vidare har flertal multipla regressioner genomförts för att fastställa om utvalda variabler kan förklara den abnormala avkastningen som börsintroduktioner uppvisar. Slutsats: Studiens resultat visar att den initiala avkastningen första dagen under perioden 2007–2014 var i genomsnitt 2,82% för studiens urval på 45 stycken börsintroduktioner på Stockholmsbörsen och First North. Börsintroduktionerna visade på en negativ trend med en underprestation de första tre månaderna. Resultatet för kort sikt överensstämmer således inte med tidigare forskning inom börsintroduktioner. På lång sikt däremot uppvisar studiens urval en underavkastning på -12,85% mätt med BHAR och -24,13% med CAR. Detta resultat överensstämmer med tidigare studier på andra marknader. Vidare kunde endast en av de utvalda variablerna, den initiala avkastningen, till en viss grad (16,8%) förklara den abnormala avkastningen på en månad. De andra variablerna var inte statistiskt signifikanta i någon av undersökningsperioderna.

Capital market is an important part of the economy. Its development undoubtedly influences efficiency of the economy and thus the overall development of the country. This master thesis analyze the process of initial public offering ("IPO") in the Czech Republic, because I believe that IPO can significantly help to develop capital market and thus the entire economy. I analyze the IPO process in terms of the main factors that affect the value of issued shares and through it the basic objective of the joint-stock company in IPO, to maximize equity gained from the process of going public. The analysis shows that significant weaknesses in the Czech regulation have been removed and the IPO process is regulated on the same level and in the same extend as in other EU countries. However, IPO remains an option that many companies do not involve in their strategic planning because of its complexity and high costs. Thorough preparation and analysis of legal options of how to go public in the legal environment can maximize profits from the issue and, moreover, it contributes to achieving higher long-term profits.

The folowing work deals with primary public issue of stocks - an external financial source of business activities. This source of finance is defined to the reader as: there are explained advantages and disadvantages of IPO Process, including supposition of succesful enter to the stock exchange. This work is concretly oriented on Pre-filing phase of a company for an enter to the stock exchange with the aim to set a procedure of IPO Process and apply it to a concrete company.