DEVELOPMENT OF SECURITIES UNDERWRITING OF CORPORATE AGRICULTURAL ENTERPRISES

Abstract

The article studies the strategic directions for development of securities underwriting of corporate agricultural enterprises in the context of increasing its market capitalization. The strategic advantages of securities underwriting for attracting capital by corporate agricultural enterprises of Ukraine in the Ukrainian and foreign stock markets have been identified: attracting investors, especially foreign ones, reducing the cost of capital, reducing lending rates, improving corporate governance, enhancing the company’s reputation, simplifying access to international markets, and reducing risks. The author identifies the disadvantages of underwriting as a partial loss of freedom, control and privacy by a company. The directions of increasing the market capitalization of corporate agricultural enterprises in the context of underwriting development have been substantiated. It has been shown that the efficiency of underwriting securities of corporate agricultural enterprises is a key factor in ensuring the successful issue of securities in the stock market. The mechanism for forming the efficiency of securities underwriting development in the context of increasing the market capitalization of corporate agricultural enterprises has been developed. It has been shown that the efficiency of underwriting securities of corporate agricultural enterprises is formed depending on the competence of the underwriter, rational choice of the stock exchange, building an optimal development strategy for the company and a strategic plan for entering the capital market, advertising activities, especially during due-diligence procedures, competitiveness and business reputation of the enterprise. A methodical approach to assessing the effectiveness of underwriting securities of corporate agricultural enterprises has been proposed, which allows to substantiate issuance decisions, to strategize the allocation of the optimal amount of financial resources, to attract investors and their capital more rationally, and to conduct scientifically based monitoring of the results of the share issue. The efficiency of underwriting and placement of shares of corporate agricultural enterprises on international stock exchanges has been analyzed.