Ljubljana Stock Exchange: Initial Public Offering

Initial public offering (IPO) is a first offer of a private company shares to the general public.

Decision to conduct an IPO is a major cornerstone in development of every company. Detailed and realistic evaluation of current operations, assets, current development and future plans of the company is necessary before deciding to go public.

Through IPO a company may offer its existing or newly issued shares to professional and retail investors, employees, strategic partners and other stakeholders. In return the company obliges itself to high standards of corporate governance and public transparency. This increases visibility and trust into a company, enabling cheaper and easier access to capital. Clearly defined corporate governance and disclosure covenants are one of the most important conditions that investors require for investing into any company’s financial instruments. 

Answer on questions below and check whether your company is ready for an IPO and public listing:
  • Is your company incorporated as a stock corporation or will become one soon?
  • Are your current owners prepared to sell or partially decrease their ownership stake and influence in the company? 
  • Is your company prepared to adopt high standards of corporate governance?
  • Is your company ready to oblige itself to high standards of public disclosure and transparency about its business and financial performance?
  • Is the management of your company prepared to invest a lot of time into investor relations and presentations of financial performance? 
  • Advantages of an IPO
    • Access to new capital
    • High standards of corporate communication
    • Separation of ownership and management functions
    • More interest for the company from investment public
    • Increasing the capital through issuance of new shares
  • Conducting an IPO
  • IPO preparations

    Before finally deciding to go public the company usually consults with its chosen advisor (investment firm or an investment bank) to set some targets of an IPO, usually how much new capital they wish to gather through an IPO, what is their desired ownership structure after an IPO etc. 

    Through an IPO process an initial offering price is established. The company, together with its adviser, analyzes how much money it wants to raise, which investments will be financed with these funds and what is the opinion of the existing owners (whether they want to partially withdraw from the investment, what market valuation is acceptable for them, etc.). A chosen advisor prepares an independent overview of the company, while the company itself and its management prepare to improve and apply best practices in corporate governance. 

    During the initial meetings with potential investors the management of a company may for the first time experience detailed questions regarding company’s strategy, competition, governance, performance indicators etc.

    During the initial meetings with potential investors due to the IPO, the company's management may, for the first time, encounter issues related to the company's strategy, competition, quality of management, financial indicators, etc.

    Preparing a Prospectus

    Before an IPO and before listing financial instruments on a regulated market a prospectus must be prepared and published, after being pre-approved by the competent authority (in Slovenia: Securities Market Agency). 

    Prospectus is a document detailing all information regarding the issuer and rights arising from its shares to be offered through an IPO or listed on a regulated market. Prospectus enables interested persons, especially retail investors, to objectively assess involved risks and take their investment decision. 


    Promotion of an IPO is being done through presentations to investors (road-shows) or individual meetings (one-on-one). Companies wishing to attract foreign investors often pursue such promotions outside Slovenia as well. Public invitation of offers or an extract of the prospectus with most important information regarding the IPO is published in the media as well. An invitation usually mentions at least the number of offered shares, price or price range per share and a deadline until which the offers shall be submitted.

    Listing on Ljubljana Stock Exchange

    After IPO the company applies for listing on the regulated market of Ljubljana Stock Exchange, which enables fair, transparent and orderly trading of financial instruments.

    During an IPO process Ljubljana Stock Exchange offers its SEOnet service to involved companies, enabling fast and wide distribution of all news and announcements regarding the IPO to wider public. 

    You are welcome to contact upravljanje-trgov@ljse.si for all questions regarding listing of shares on Ljubljana Stock Exchange and using our SEOnet service.