Capital markets

Capital markets are becoming an increasingly important source of funding for companies in the Baltic States. Stable companies, while looking for alternatives to bank financing, are seeking to enter stock lists in the Baltic, Scandinavian, and Eastern European countries.
Public bond issuance, in turn, allows a company to become more recognisable, diversifying sources of capital raising and is often financially more advantageous than other types of borrowing.

Why to work with us?

Eversheds Sutherland Bitāns Capital Markets Team is the leading legal adviser in respect to capital markets transactions in the Baltic States. The extensive experience of the team allows us to understand the rationale of the companies from various sectors to raise the capital on the stock exchange, as well as the regulatory requirements and practical trends of the supervisory authorities. We regularly innovate in existing practices and introduce international practices in the Baltic States.

We are proud of our unique experience acquired in advising nearly all of the public offerings of equities (shares) and listing transactions of Latvian companies over the last 5 years, as well as most of the corporate debt securities (bonds) transactions in Latvia.

 

Legal services on issuance of securities

Equity securities

Debt securities

Legal services concerning Equity securities Issuance of shares, depository certificates and other equity securities Initial Public Offering (IPO), Secondary Public Offering (SPO), Follow-on Public Offering (FPO) Listing of shares without raising funds (Technical Listing) Removal of listed securities from the stock exchanges (De-listing) Ensuring compliance with the capital market regulations Other issues related to the operations of the equity markets

Legal services concerning debt securities transactions Emissions of secured and unsecured corporate bonds Development of documentation for public offerings and private placements of bonds Providing legal support and representation of the issuers Collateral (pledge) agent services Establishment of a security structure, development of contracts and related transaction documents, registration of pledges Ensuring compliance with the capital market regulations Other issues related to the operations of the debt markets

 

Advantages of fund-raising in the capital markets

• Extension and diversification of sources of capital raising
• Establishment of recognizability and reputation, quality and sustainability of the company
• Establishment of employee incentive schemes
• Better credibility in the eyes of investors and international cooperation partners
• Organizing corporate governance
• Raising capital for small and medium-sized enterprises
• Possibility to sell shares of the company at a market price
• Provision of liquidity of company shares
• Listing opportunities in foreign stock exchanges
• A broader and safer approach to capital in the future (re-issuance option)
• Shares as a financial instrument for the purchase of another company
• Opportunity for additional earning, without loss of control in the company
• Funding ideas that may not match the profile of the transactions financed by banks

Our experience:

• IPO (private placement of shares and listing on Nasdaq First North MTF) for a Latvian company
• AS Citadele banka IPO (public offering and listing of shares and GDRs on the London Stock Exchange and Nasdaq Riga); Creation of share categories with different rights for a leading bank in Latvia
• AS HansaMatrix IPO (private placement of shares and listing on Nasdaq Riga); Public offering of shares by the largest shareholder SIA Macro Rīga (share auction in the Nasdaq Riga system)
• AS Madara Cosmetics Regulatory & AGM (ensuring compliance with securities market regulation, organization, and management of shareholders' meetings) for one of the leading cosmetics manufacturers in Northern Europe
• AS Valmieras stikla šķiedra FPO (follow-on public offering); Restructuring advice to one of the leading glass fibre manufacturers in Europe
• AS Latvijas Kuģniecība Squeeze-out bid (final share buyout); Closed share issue (public offering); Mandatory bid (mandatory share buyout); SPO (secondary public offering); De-listing (exclusion of shares from the Baltic Main List) for a Latvian shipping company
• JSC Ventspils Nafta Mandatory bid (mandatory share buyout); De-listing from the Baltic Main List of a leading energy company
• Secured bond issue for a company established in Latvia
• AS Citadele banka First unsecured subordinated bond issue; Second unsecured subordinated bond issue for a leading bank in Latvia
• Collateral Agent services for the issuance of secured bonds to a non-bank creditor in Latvia
• Collateral Agent services for the issuance of secured bonds to a subsidiary of an independent Estonian investment firm