Bond issue

Bonds are a very popular means of obtaining funds important for the further development of business. Complex and uncertain financing through bank loans has become less attractive for an increasing number of firms.

  • More funds are available than from a bank loan

  • Less administrative burden than bank loans

  • Greater flexibility in the use of funds

  • Short completion time (obtaining funds)

  • Reduced risk in the development of the company compared to bank credit

  • Higher motivation of employees

  • Favourable price of borrowed finances

Private bonds are a simpler and cheaper option. The great advantage here is that the conditions of the issue are not approved by the Czech National Bank. Whoever sets the terms of the issue is completely and certainly the issuer (yield, repayment, etc.). You may have the bonds in certificate or book-entry form, secured (liability, lien) or unsecured. The issuer may offer the issue itself or through an intermediary (bank, securities trader). The yields are paid by the bank or directly by the issuer. Public bonds, on the other hand, can be offered publicly and can also be traded on the stock exchange.

Mercurius Pro will prepare all documents for you, set parameters exactly according to the agreement (maturity, minimum amount of investment, coupon amount) and will also arrange all formalities (will ensure settlement, keeping of owner records, payment of interest and principal). However, if you are only interested in advice and you can arrange everything else yourself, that is not a problem either.

Issuance of shares

By entering the stock exchange, your company's shares will start to be traded on the capital market alongside other reputable companies. By entering the stock exchange, the company becomes transparent. It publishes its financial reports, important information about the company, such as about obtaining a new patent, a significant contract or a change of key person in the company. In addition to transparency, spontaneous media interest plays an important role, which naturally creates awareness of the company and its functioning, thus attracting public interest, including new clients. The company thus creates completely natural PR itself and completely free of charge. The advantage of such charged capital is that it will remain in the company for an indefinite period of time and does not entail additional costs.

The issue of own shares leads to an increase in the company's capital. Shares can be offered publicly and can be traded on the stock exchange. The stock prospectus is approved by the Czech National Bank (audited financial statements, information about the issuer, key persons, etc.). The shares are booked in the Czech Central Depository of Securities. Preparation for the issue is carried out through an intermediary such as a bank or a securities trader. For preparation it is necessary to provide due diligence (legal examination), analytical reporting, auditing for the last three years transferred to IFRS, etc. The process takes approximately 6 months to complete.

  • Effective capital increase

  • Capital structure optimisation

  • Increase in liquidity of shares

  • Increase in company transparency

  • Creation of natural PR

  • Employee motivation process

  • Improvement of your company's performance

  • Facilitates the implementation of employee programmes

If the company is listed on the START Stock Exchange in Prague, the company's value can range from as much as 1 million euros. The advantage of START over other similar markets in Europe is the minimum cost on the part of the issuer.

The advantage over bond issues is that equity capital is not, by its nature, intended to be repaid by a joint-stock company, nor do regular dividends have to be paid, especially in adverse economic conditions. For this reason, the issue of shares from the point of view of a joint-stock company is particularly suitable for long-term investments.

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Trading is risky. You can lose even more than your entire original investment. Consider each of your transactions carefully first. Do not make any trades if you do not understand all the risks carefully. When using leveraged products, the risk increases extremely.

Mercurius Pro, o.c.p., a.s. conducts exchange trades through Interactive Brokers LLC, hereinafter referred to as IB, which is a registered securities trader, a member of the Futures Commission Merchant and Forex Dealer, regulated by the U.S. Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA), and is a member of the Financial Industry Regulatory Authority (FINRA) and several other self-regulatory organisations.

Mercurius Pro, o.c.p., a.s. is not the only approved broker, broker, third party financial adviser or hedge fund recommended by IB. IB provides Mercurius customers with clearing and execution services. None of the information contained on this site constitutes a recommendation, offer or solicitation to offer to buy, sell or hold any security, financial product or instrument or to implement any particular investment strategy. Neither IB nor Mercurius Pro o.c.p., a.s., represents or assumes any responsibility for the accuracy or completeness of the information provided on this website.

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