Disinvestment of private equity holdings through an IPO Abstract

Disinvestment of private equity holdings through an IPO

Abstract:

The article considers the disinvestment of a private equity holding through an IPO. To this end, it first analyzes the economic and legal reasons that explain why this exit option can be chosen in practice.

Among the economic reasons, both aspects related to business purpose and to liquidity are taken into account. The legal reasons include potential infringements
of the Market Abuse Regulation as well as rules on the transparency of major holdings and the acquisition of own shares by the company.

The paper also analyzes the legal framework of this disinvestment alternative, taking into account the different aspects of corporate and capital markets
law.

Keywords: disinvestment, IPO, market abuse, general meeting, prospectus, admission to trading.