securities
SECURITIES DISTRIBUTION
Distribution of Securities via Brokerage Firms
The first model entails the distribution of securities through licensed brokers within the European Union. These brokers are specialized entities in the sale of securities and hold the necessary regulatory approvals in their respective jurisdictions. Before initiating any distribution, we first conduct comprehensive market research by engaging with these brokers, who in turn assess investor demand for the specific security issued by our client. Based on their feedback, we fine-tune the security's structure and terms to align with the market's needs. This preliminary step is critical in shaping the offering, particularly when it comes to bonds, as investor interest plays a direct role in determining the security's structure.
In many instances, brokers may purchase the entire bond issuance from the issuer, taking on the responsibility of selling the securities to a broader investor base. This mechanism ensures the issuer secures the necessary capital upfront, while the broker assumes the task of distribution.
Listing on Securities Exchanges
The second model involves listing the security—whether equity or debt—on a regulated securities exchange, primarily within the European Union or in other associated jurisdictions. In tandem with this, we may organize a roadshow to increase visibility and generate interest among potential investors. This approach is particularly suitable for larger issuances, where public exposure via listing provides an opportunity to reach a broad investor audience. The process involves meeting various regulatory requirements, and our role is to guide the client through these steps, ensuring the security is properly structured and compliant with market expectations.
Direct Arrangement of Securities
The third model, known as the direct arrangement of securities, offers issuers the ability to engage directly with investors, bypassing intermediaries. In this approach, after carefully selecting a jurisdiction based on factors such as economic stability, market size, and the regulatory environment, we implement targeted marketing campaigns on behalf of the issuer. These campaigns may include online advertising (e.g., PPC), PR articles, presentations, and other strategies designed to directly connect with potential investors.
This model facilitates the establishment of strong, long-term relationships between the issuer and investors. By cultivating direct investor engagement, the issuer builds a loyal investor base, which proves valuable in future capital raises. If the issuer chooses to issue additional securities, they can easily reach out to this pre-existing pool of investors, thereby significantly reducing the cost of distribution for subsequent offerings. This approach not only streamlines future fundraising but also strengthens the issuer's position in the marketplace.