Financial Communications and Marketing

Capital Increases

Privilege Relations LLP is acting as professional intermediary between companies and the capital market. As one of its services, Privilege Relations LLP offers the organization of road shows for investors and the financial media. Privilege Relations LLP will therefore assist you in case of capital increases by also providing you a choice of appropriate investors.

Capital increases may become necessary in terms of increasing the shareholder’s equity and therefore facilitate to augment capital resources. Capital increases provide new investors with the possibility of becoming new shareholders and subsequently participating in the success of a company.

Capital increases can be conducted in different ways. Depending on the location of the company, different pre-conditions for capital increases apply. In Germany, for example, an extraordinary general meeting will be summoned before carrying out capital increases in order to receive the authorization of the shareholders. Additionally, the current shareholders have a pre-emptive right in capital increases to subscribe new shares. However, it is possible to cancel this right. Following the authorization of the shareholders, as one way of capital increases, the company could issue new shares in exchange for cash which will help the company to bring new funds into the company.

Privilege Relations LLP will assist you in coordinating “the after” of the decision about capital increases. As mentioned above, we offer you the organization of a road show to meet with appropriate investors as well as with analysts to make your capital increases as successful as possible.

If you have further questions in regard to capital increases or our connected services, please do not hesitate to contact us. You can reach us at contact@privilege-relations.com.



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