Navigating The New Recommendation On Directed Share Issues – Towards Greater Transparency

In response to the regular, and sometimes even heated, public debate and criticism on the justification of directed share issues, new regulatory developments have emerged in the Finnish securities market landscape.

The Finnish Securities Market Association's new recommendation on directed share issues, effective December 1, 2024, represents a shift towards greater transparency on the actual reasons behind potential derogations from the existing shareholders' pre-emptive subscription right and aims to promote good securities market practice. Understanding these new guidelines is essential for any company listed in Finland, either on the Main Market or First North Growth Market, that is planning to raise funds by way of a directed share issue.