Transactions in equity capital markets
The company's entry to the stock exchange (Initial Public Offering, IPO), issue of shares (Secondary Public Offering, SPO), sale of shares by current shareholders in the form of Accelerated Book Building (ABB), or a tender offer for shares in a public company (Tender Offer) are strategic decisions and transactions from the point of view of the company, management board, supervisory board and owners.
Such transactions require appropriate preparation, confidentiality and communication between all stakeholders. Typically, such projects involve key persons on the part of the company (Management Board, Supervisory Board, senior managers) and advisers (financial, legal, IR, PR). Most often they require the preparation of a prospectus or other information documents, interaction and consent of the regulator in the form of the PFSA or KDPW, and proper communication with the capital market, i.e. with investors.
Virtual Data Room as a tool for managing projects on the equity capital market
Very often, for the purposes of project management, communication and preparation of necessary documents, Virtual Data Room (VDR) is used as a tool for secure document sharing, confidential project communication and conducting the entire transaction process.
Today's modern Virtual Data Room solutions are not only places to securely share project documents, but above all, extensive project management tools, incl. in the financial markets.
Modern VDR can be used in capital market projects, among others as:
- a platform for keeping project documentation, conducting the due diligence process and communication between the company and advisors;
- a platform for separate, confidential communication of the Management Board, Supervisory Board and key employees involved in the project;
- a platform for communication with investors in the transaction process (sharing the prospectus, presentations, analytical reports and Q&A with investors);
All these processes can be carried out in parallel in one system, keeping the entire project, schedule, involved teams, data and project documents under control. It is worth noting that a lot of information and data provided during such projects is a business secret, may be confidential information and should be subject to special protection, which is ensured by the best Virtual Data Room solutions.
Why is it worth using Virtual Data Room for equity capital market transactions?
Most advisors know the advantages of using Virtual Data Room and do not need to be convinced to use this type of tools in transaction processes. The advantages of VDR include:
1. speed of implementation of the VDR solution - usually the VDR is made available as a SaaS service within a few minutes and you can start your project "on the spot";
2. fully cloud service - no need to install additional components, high quality and security of the offered cloud infrastructure;
3.high security of the VDR solution - the use of a number of security measures and cryptography for safe, encrypted and confidential user communication, compliance with the requirements of the GDPR, OWASP or the recommendations of the Polish Financial Supervision Authority;
4. 24/7 availability and speed of operation - the ability to work remotely from anywhere in the world and in any time zone, as well as the speed and intuitiveness of the interface, the ability to work on various devices;
5. a number of modern VDR functionalities - an extensive matrix for granting user rights, special viewers for viewing documents, group work, document versioning, extensive monitoring of user activity and a number of other facilities for project management;
6. interface in many languages ​​and the ability to work remotely for international teams;
7. relatively cheap cost of implementing and maintaining a VDR solution - monthly cost usually depends on the cloud space used.