Izar Services

Equity Capital Markets

Equity Capital Markets (ECM) refer to financial markets where companies raise capital by issuing shares of ownership, or equity, to investors. It is the market where companies sell ownership stakes in their business in exchange for funds. The Stock Exchange of Mauritius caters to the needs of companies of varying sizes through the venture board, the development and enterprise market, and of course the official board for large caps. The primary goal of equity capital markets is to facilitate the flow of funds from investors to companies seeking to finance their operations, growth, and various projects. IZAR Ltd’s team uses its experience and relationships to help companies execute these types of transactions.

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Understanding Equity Capital Markets

There are two main activities within equity capital markets:

01

Initial Public Offerings (IPOs)

An IPO occurs when a private company offers its shares to the public for the first time. This is typically done to raise capital and provide liquidity for early investors and employees. Companies going public through an IPO are required to provide extensive financial disclosures and adhere to regulatory requirements.

02

Secondary Offerings

Secondary offerings involve the issuance of additional shares by a company that is already publicly listed. These offerings can take various forms, including follow-on offerings, rights issues, and private placements. Secondary offerings allow companies to raise additional capital after their initial public offering.

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Equity Capital Markets in Mauritius

Equity Capital Markets play a crucial role in the financial ecosystem by allowing companies to access a broader base of investors, which can include institutional investors, individual investors, and other market participants. Investors, in turn, have the opportunity to invest in companies with growth potential and potentially earn returns through capital appreciation and dividends.

The Stock Exchange of Mauritius requires companies to mandate an advisory boutique such as IZAR Ltd to assist in the process of going public, preparing regulatory documents, pricing the offering, and marketing the shares to potential investors.

In Mauritius, companies can take a public route to raise equity via a listing on the Official Board of the Stock Exchange of Mauritius, a listing on the Development & Enterprise Market, or making the shares available for trade on the Venture Exchange. Alternatively, they can take a private route and execute a direct transaction as a preferential offer of securities.

Why consider ECM?

Entrepreneurs need to consider equity capital markets when they are looking to move from the founder / co founder stage and are looking to scale up their business.

Transaction Experience in Debt Capital Markets

Project Cadboll Estate

USD 39 million

IZAR Ltd was transaction adviser to Forty Two Point Two on a senior secured AAAMU bond issuance of MUR 1.8 billion in GBP and MUR denominated debt with a 4.5yr maturity. The deal offered an attr...

Project Ardberg

Undisclosed

IZAR Ltd acted as a transaction advisor for an entrepreneurial client who had established the premier direct-selling company in Mauritius....

Project Tamnavlin

USD 15 million

IZAR Ltd served as the exclusive transaction advisor to ABC Banking Corporation Ltd for the subordinated unsecured debt issuance totaling MUR 700 million, structured to qualify as Tier 2 capital under...