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A Comprehensive Guide to IPOs in Greece

This guide provides detailed information on listing procedures, markets, legislation, and procedures for an IPO in Greece, using a case study on Piraeus Port Organization.

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A Comprehensive Guide to IPOs in Greece

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  1. IPOs in Greece – The greek Experience CONTENTS PART I -General Info for listing procedures & markets PART II - Legislation and procedures of an IPO PART III - Index of contents of the Prospectus PART IV - Statistics PART V - Case Study – Piraeus Port Organisation

  2. PART I GENERAL INFO FOR LISTING PROCEDURES & MARKETS

  3. Part I - General info for listing procedures and market ATHENS STOCK EXCHANGE is structured in three markets: 1. Main Market • large and middle cap companies 2. Parallel Market • small cap companies 3. New Market • dynamic and Innovative companies 4. Greek Market for Emerging Capital Markets (EAGAK) • Companies from Emerging Markets

  4. Part I - General info for listing procedures and market • Paid-up Capital: min 11.74 million EURO for the fiscal year, proceeding the listing admission • Publication of Financial Statements: last 3 fiscal years • Tax Audit:financial statements audited by chartered auditors • Free float: min 25% distributed to the public • Underwriter • Prospectus Listing Requirements for the Main Market

  5. Part I - General info for listing procedures and market • Paid-up Capital: min 2.935 million EURO for the fiscal year, proceeding the listing admission • Publication of Financial Statements: last 2 fiscal years • Tax Audit:financial statements audited by chartered auditors • Free float: min 20% distributed to the public • Underwriter • Prospectus Listing Requirements for the Parallel Market

  6. Part I - General info for listing procedures and market • Paid-up Capital: min 0.59 million EURO for the fiscal year, proceeding the listing admission • Publication of Financial Statements: last 2 fiscal years • Tax Audit:financial statements audited by chartered auditors • Free float: min 20% distributed to the public blocking of shares : 80% in first year of listing 50% in the second and third year of listing min 100,000 shares of value of at least 0.734 mil EURO • Underwriter • Prospectus Listing Requirements for the New Market (NE.X.A)

  7. PART II LEGISLATION AND PROCEDURES OF AN IPO

  8. Part II - Legislation and procedures of an IPO According to the Greek legislation, there are three stages for a company in order to go public: • Stage 1 • Stage 2 • Stage 3 approval of the Prospectus before the initial trading to the Stock Exchange approval of the admission of the company’s shares to the Stock Exchange approval of the company’s shares trading on Stock Exchange

  9. Part II - Legislation and procedures of an IPO Stage 1 Approval of the Prospectus before the initial trading to the Stock Exchange • The main Underwriter provides the necessary documentation to the Stock Market Authorities. • The Stock Market Authorities examine the documentation with a view to checking the fulfillment of the requirements and approve the prospectus. • The Stock Market Authorities inform the Capital Market Commission about the approval of the prospectus. • The company that goes public and the main Underwriter inform the Stock Market Authorities about the period of implementation of the IPO.

  10. Part II - Legislation and procedures of an IPO

  11. Part II - Legislation and procedures of an IPO Stage 2 Approval of the admission of the Company’s shares to the Stock Exchange • The main Underwriter provides the necessary documentation to the Stock Market Authorities. • The Stock Market Authorities examine the documentation with a view to checking the fulfillment of the requirements and approve the admission of the Company’s shares to the market.

  12. Part II - Legislation and procedures of an IPO

  13. Part II - Legislation and procedures of an IPO Stage 3 Approval of the company’s shares trading on Stock Exchange • The main Underwriter provides the necessary documentation to the Stock Market Authorities. • The Stock Market Authorities examine the documentation with a view to checking the fulfillment of the requirements and approve the trading of the Company’s shares to the market.

  14. Part II - Legislation and procedures of an IPO

  15. Part II - Legislation and procedures of an IPO

  16. PART III INDEX OF CONTENTS OF THE PROSPECTUS

  17. Part III - Index of contents of the Prospectus Summary data of the issue • the number and the type (common, preference, etc.), of shares before the issue • the total number of shares before the issue • the number and the type of the new shares • the total number of shares after the issue • the book value of the share • the disposal price of the share • the total income of the issue • the total income of the issue

  18. Part III - Index of contents of the Prospectus Summary economic aggregates • financial data of the company of the past 3 or 5 years • information about: • if there has been any change at the amortization method or the method of evaluation of stock and other assets • if there has been any account entries which are mentioned by the Chartered Accountants and are affecting the operating results

  19. Part III - Index of contents of the Prospectus 1. Information about the compilation of the Prospectus and the company’s auditors • names and addresses of the responsible persons for the compilation of the Prospectus from the company and the underwriter of the issue • information about: • the regular and the unscheduled financial chartered auditors • the legal auditors • the tax assessors • conjunctions of the company’s auditors

  20. Part III - Index of contents of the Prospectus 2. Share-Capital Increase and the procedure of disposal of the new shares • general • procedure of disposal of the new shares • underwriters - cost of the issue • destination of the new capital

  21. Part III - Index of contents of the Prospectus 3. Share-Holders Rights • general • taxation of the dividends

  22. Part III - Index of contents of the Prospectus 4. Information about the Company (the issuer) • general information • historical records • description of the company’s business activity • production of certain goods - production process • sales network and distribution network • property assets - guarantees and real securities • development of the capital stock • equity capital - book value of a share • Management - Administration Department

  23. Part III - Index of contents of the Prospectus • participation of management and main shareholders at the Board of Directors of other companies • organizational chart • personnel • investments in last 5 years • shareholders • equity capital - book value of a share

  24. Part III - Index of contents of the Prospectus 5. Data of the business sector of activity • general data of the business sector of activity • competition - prospects of the market • the company’s position in the sector

  25. Part III - Index of contents of the Prospectus 6. Financial Statements of the company’s activity • the company’s activity • business development - operating results • financial costs • distribution of profits before depreciation • financial status analysis - long term liabilities • to banks • to suppliers • sources and uses of capital • cash flow

  26. Part III - Index of contents of the Prospectus 7. Associated companies • associated companies • subsidiaries (more than 50% of ownership) • affiliated companies (10-50% of ownership) • companies with law participation (under 10% of ownership) • companies which have common Management or common Board of Directors with the issuing company • companies which participate in the issuing company • companies in which the main shareholders or members of the Board of Directors of the issuing company participate • subsidiaries of subsidiaries and affiliated companies • interfirm trades and transactions

  27. Part III - Index of contents of the Prospectus 8. Sales Expectations - operating results expectations • forecast • of sales • the Balance Sheet • the operating results for the current and the next financial year This forecast must have been controlled and evaluated by the Underwriter

  28. Part III - Index of contents of the Prospectus 9. Long term Goals - Prospects • targets and strategy • investment policy

  29. Part III - Index of contents of the Prospectus 10. Dividend Policy • the company’s distributed dividends for the past 5 years • the future dividend distribution policy The dividend policy has to be expressed as a percentage (%) to the company’s net profit.

  30. Part III - Index of contents of the Prospectus 11. Disposal Price of the Share • rationalize the disposal price of the share in accordance to: • the basic economic aggregates • the property assets • the company’s business sector of activity

  31. PART IV STATISTICS

  32. Part IV - Statistics 1. Macroeconomic Indices • Inflation • 3Months T-Bills • 3Years T-Bills • Bank Deposits • Macroeconomics Data

  33. Part IV - Statistics Evolution of inflation rate (1992-2002)

  34. Part IV - Statistics Evolution of 3Months T-Bills yield (1992-2002)

  35. Part IV - Statistics Evolution of 3 Years T-Bills yield (1996-2002)

  36. Part IV - Statistics Evolution of bank deposits yield (1995-2002)

  37. Part IV - Statistics Evolution of macroeconomics data (1995-2002)

  38. Part IV - Statistics 2. Stock Market Statistics • Evolution of Greek Stock Exchange General Index • Evolution of Greek Stock Exchange General Index – annual variation • Evolution of number of Listed Companies • Evolution of Market Capitalization • Evolution of Greek Stock Market Turnover • Evolution of Greek Stock Market number of trades • Evolution of Greek Stock Market Indicators

  39. Part IV - Statistics Evolution Of Greek Stock Exchange General Index (1992-2002)

  40. Part IV - Statistics Evolution of Stock Market General Index - annual variation (1992-2002) 1. Greece locks currency to Exchange Rate Mechanism (EURO) – 16.03.1998 2. Greece request lock of Exchange Rate Mechanism (EURO) – 3.03.2000 3. Morgan Stanley Capital International classified MSCI Greece Index as a developed market index – 31.05.2001

  41. Part IV - Statistics Evolution of number of Listed Companies (1992-2002)

  42. Part IV - Statistics Evolution of Greek Stock Market Capitalization (1995-2002)

  43. Part IV - Statistics Evolution of Greek Stock Market Turnover (1995-2002)

  44. Part IV - Statistics Evolution of Greek Stock Market Number of trades (1995-2002)

  45. Part IV - Statistics Evolution of Greek Stock Market Indicators(1995-2002)

  46. Part IV - Statistics • Evolution of Number of IPOs • IPOs Total Capital Drawn • Use of IPOs Capital Drawn • Over cover of IPO • Maximum/Minimum first 3 listing days • The largest IPOs • Evolution of IPOs Indicators 3. IPO’s STATISTICS

  47. Part IV - Statistics Evolution of Number of IPOs (1994-2002)

  48. Part IV - Statistics IPO’s Total Capital Drawn (1994-2002)

  49. Part IV - Statistics IPO’s Total Capital Drawn - values adjusted to inflation (1994-2002) Basic year - 1994

  50. Part IV - Statistics IPO’s Total Capital Drawn (1994-2002)

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