The meeting was held on 7th October 2015 in Park Hotel with the participation of finance directors and members of management boards from 20 companies.

 

Why is it worthwhile to launch on the stock exchange? Jakub Lasota, the managing partner at Zarzecki, Lasota i Wspólnicy, listed the arguments in favour of the decision to go public: “The stock exchange makes it easier to raise capital and change the corporate structure, it makes the company more credible and it stabilizes business.  At the same time, the company that has been floated on the stock exchange is perceived as more prestigious by potential investors and banks. Liquidity of securities is another advantage - they can be alienated fast, whereas the same process takes months in the private market,” he explains.

Higher valuation of the company’s assets upon their sale is also important. “The valuation is 20% higher for listed companies , which gives a capital leverage – after the company goes public it is able to undertake investment projects that otherwise would not be possible,” he adds.

 

What are the consequences of an IPO? Tomasz Gabryel, a partner at Zarzecki, Lasota i Wspólnicy mentions the following: a threat of losing control over the company, financial costs, disclosure requirements, risk of being taken over by another entity, new shareholders and division of power. Jakub Lasota points out another fact: “The financial reporting process in a public company is never ending; the finance division grows , and the finance director acquires many new responsibilities, but that can be seen as an interesting challenge.”

 

What to choose – New Connect or WSE? That depends on the capital amount. “The threshold of EUR 12 million must be met for IPOs on WSE. Originally , New Connect was supposed to function as a kindergarten of sorts. Companies listed there were expected to get used to the market, develop and instil a new corporate governance under more lenient conditions. However, the criteria to be met to enter New Connect are growing stricter.  It is a positive development, as it requires more determination, greater investment outlays and more business maturity,” explains Jakub Lasota.

 

How to get prepared? “First you need to analyse the transformation of your entity into a joint stock company. The initial capital is among the most basic issues - it should be PLN 100 thousand. Then you should take the steps needed to change the legal form, i.e. prepare the appropriate documentation and file an application for company transformation with the registration court. At this stage the accounting department must work in close cooperation with lawyers. The whole procedure takes about a year,” indicates, Marta Tymoszuk-Lewandowska, attorney at law, Poncyljusz i Radź Grupa Doradczo-Księgowa.

 

How to raise the funding? Corporate bonds on Catalyst are a good and simple method. They are transparent and easy to follow,” says Szymon Klimas, the president of the management board of IQ Pomerania. It is also recommended to transfer some of the shares to an investment fund that will help the company earn trust and recruit a person to the Supervisory Board whose name will later be associated with the company. Marketing activities are equally important. “Raising capital can be seen as selling a vision of the company’s future. It is not a market of numbers, but rather a market of sentiments and emotions, building relations and interacting with other people,” indicated Szymon Klimas.

 

The session was organized by Finexa Association of Finance Directors in Szczecin and the partners included: KS Service, Poncyljusz i Radź Grupa Doradczo-Księgowa, Zarzecki, Lasota i Wspólnicy and Investor and Exporter Service Center of the Marshall Office in Szczecin.

 

“During our next meeting we plan to discuss the potential financing opportunities for smaller companies, including factoring and leasing,” announces Sebastian Goschorski, the organizer of the event. The said meeting will take place later this year.

 

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