Investment banker Sami Miettinen to give at first for Mikael Jungner points for creativity. In Miettinen’s opinion, the proposal of Jungner, who defected from the Liike Nyt party to the coalition, is an energy company Helen’s from listing on the stock exchange is “fresh”.
In practice, however, Jungner is wrong, according to Miettinen, when he proposed a targeted share issue, in which a third of Helen’s shares would be sold to a select group, primarily to Helsinki residents.
Kauppalehtin in an interview on Saturday communications office Kreabin CEO and the coalition’s municipal election candidate Jungner envisioned that it would be possible to favor the people of Helsinki.
“You could even give a moderate discount to the people of Helsinki,” he thought.
Helen is owned by the city of Helsinki. According to Jungner, the current ownership arrangement makes the energy company an underperformer.
Being from Helsinki is not enough of a reason
According to the Limited Liability Companies Act, there must be a particularly strong basis for a directed offering, Miettinen reminds.
Specialized in business arrangements Translink Corporate Financen partner Miettinen is an expert in stock market listings and has been involved in listing several companies on the Helsinki stock exchange, starting with a tire manufacturer Nokian Tires in 1995.
“Being from Helsinki is not a compelling reason,” he says.
According to Miettinen, it would be difficult to sell shares only to Helsinki residents because it would be difficult to gather reliable information about the municipality of residence from those participating in the share issue.
In a classic initial public offering, shares can be allocated to different groups: for example, a separate offering can be aimed at the staff of the listed company.
“They can be given the discount that Jungner wanted. It can be 10 percent,” says Miettinen.
The second group in IPOs is usually made up of non-professional investors, i.e. the public. The third group includes institutional investors, such as pension insurance companies and family companies.
In Ann, different groups can justifiably be treated with different values in terms of the number of shares. Therefore, a certain share pot can be reserved for staff, another for private investors and a third for institutional investors.
However, according to Miettinen, it is in accordance with the spirit of the Limited Liability Companies Act that no price reduction is given to anyone other than the employees of the company that may be listed.
Poor Finns
According to Miettinen, the problem is usually not that there are too many willing participants, in which case the offering would have to be limited, but rather the opposite.
“If you think about the IPO in the current market that it goes to the side of excess demand, then that is a wrong assumption.”
Miettinen mentions developing weighing devices and software Tamtronin listing two years ago.
In terms of the success of the offering, it was essential that the anchor investors agreed to subscribe for more than half of the shares offered in the offering.
“It’s terribly difficult, professional work, to make an offer successful, unless you underprice.”
Right now, according to Miettinen, IPOs are “quite frozen”.
“Finns are poor and institutions are too big to buy IPOs of small companies [listautumisanteja].”
Miettinen is worried about the development.
“Do we really not have private capitalists in this country? I myself answer that it is not, because we are so poor and overtaxed.”