What a share issue prospectus helps you assess
The prospectus gives an overall picture of the company, the offer and the risks associated with the investment. It is a central basis for understanding both the business model and the terms.
For investors, the prospectus works as a guide for comparing the offer with other alternatives and judging whether risk and potential are reasonably priced.
What information a share issue prospectus contains
A share issue prospectus contains standardised sections intended to give investors a sufficient basis for decisions.
- A description of the company and its business
- Terms of the issue and subscription
- Risk factors relating to the company and the market
- Financial information and history
- How the capital from the issue will be used
When you go through these parts, you get a clearer picture of both the opportunities and the risks in the investment.
When a share issue prospectus is required
Worth bearing in mind
A prospectus is required when a share issue is directed at the public or when securities are to be admitted to trading on a regulated market. The requirements are governed by legislation and supervisory authorities and aim to create transparency and protect investors.
In some cases exemptions may apply, for example for smaller issues or when the offer is directed at a limited number of investors. If a prospectus is required, it must normally be approved by the competent authority before it is published.
Frequently asked questions
Is a share issue prospectus the same as an information memorandum?
No, a share issue prospectus is a document regulated by law, whereas an information memorandum is used in situations where the prospectus requirement does not apply.
Who is responsible for the content of the prospectus?
The company and its board are responsible for ensuring that the information is correct, complete and not misleading.
Do all investors have to read the prospectus?
It is not a formal requirement, but it is strongly recommended, since the prospectus is the most important source of information before the investment.
Where is a share issue prospectus published?
It is usually published on the company's website and with the relevant supervisory authority after approval.
Can a share issue prospectus be updated?
Yes, if significant new information arises, the prospectus must be updated by means of a supplement.