The Directions of Development of Primary Public Offering of Shares in Ukraine

A balanced corporate financing plays an important role in maintaining financial stability, and it is therefore advisable to focus on reducing existing imbalances regarding the significant predominance of banking crediting compared to market financing. In terms of this direction of modernization of financial system it is very important to implement measures to create an effective system of primary public offering of shares and their further circulation in the market. The development of public market of shares of large companies may include the following stages: 1) placement of small stocks of shares of public banks; 2) public offering of shares of large State-owned companies; 3) placement of shares of large private companies. To maintain the secondary market of shares it is expedient to define the criteria of listing of shares at the stock exchange, which should not be too rigoristic and should conform to international norms taking account of the domestic corporate realities. In order to increase the protection against possible corporate raiding, it is necessary to review the legal rules on the procedure for acquiring large stocks of shares. The second direction of IPO development is the creation of an alternative trading platform for small and medium-sized companies. To reduce the costs of issuers in this segment of the market it is expedient to introduce the information document reduced by volume, rather than the norm on disclosure of the not wide prospectus of issue.