Definition Definition

Directed Public Share Issues

Definition (1):

A directed public share issue is defined as one that is targeted at investors in a single country and underwritten in whole or in part by investment institutions from that country. The issue might or might not be denominated in the currency of the target market. The shares might or might not be cross-listed on a stock exchange in the target market.

Definition (2):

A directed public share issue might be motivated by a need to fund acquisitions or major capital investments in a target foreign market. This is an especially important source of equity for firms that reside in smaller capital markets and that have outgrown that market. A foreign share issue, plus cross-listing, can provide it with improved liquidity for its shares and the means to use those shares to pay for acquisitions.

Definition (3):

A directed public share issue targets investors in a specific country with the share issue. Shares may not be denominated in that country’s currency and cross-listed in that country. Generally, it needs a prospectus, underwriting by in the specific country. It floats a new issue in the target country and may be required to finance. It may cause the acquisition of the available production facilities and create new production facilities.

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