There are many reasons why a company may wish to affiliate its shares to Euroclear — but the process is always the same. Here, we break down how it works.
A CSD-registered company (Swedish: avstämningsbolag) is a limited company whose articles of association include a provision stating that the company’s shares must be registered in a central securities depository register. Companies that already have, or plan to have, a large number of shareholders often choose to become CSD-registered companies — for example, public limited companies.
A listing, or IPO (Initial Public Offering), is when a company is listed on a stock exchange and its shares become available for public trading. All companies preparing for a listing must be public limited companies, which requires a resolution by the general meeting before the company can initiate its IPO process. It’s most common for a company, in connection with an IPO, to carry out a directed share issue to the public. There are several requirements that must be met for a company to be listed on the stock exchange – for example, the company must be affiliated to Euroclear Sweden AB.
