Sales Public Offers

The companies admitted to quotation can offer the public shares or debentures that were issued in the past, according to the present legislation of the corresponding country. For it, they have to accept to give information about the characteristics of the offer, economic background, audit reports and perspectives of the company.

In a sales public offer several people intervene:

arrangers: are those who have the responsibility or selling among the public, the securities offered. They are usually credit entities.

Insurers: are those who commit themselves to see that the offer concludes successfully. They are usually credit entities that are usually also arrangers, which will keep the securities in case they are not totally sold.

The price of the sales public offers are usually fixed immediately before the acquisition, in function of the applications that are done for the securities. The acquisition is done by distinguishing the retail section (individual shareholders) and the institutional section (institutions with whom there is a compromise of placing). In case there is more demands for securities than that which you can offer, an allot will be done.

The sales public offers are usually accompanied by great advertising campaigns that try to attract the interest of the investors. In the previous weeks of the sales public offers, in most of the cases and specially when the market is on the rise, the offered shares usually experiment important rises.