Banking and securities law

  • Post-IPO support: stabilisation and liquidity contracts

    By Charlotte GAUCHON
    20 July 2025
    Going public is a decisive step for a company, but the success of the operation is not measured only on the day of the first listing. The period that follows is just as decisive in building investor confidence and ensuring the long-term value of the stock. Excessive volatility or a lack of trading can quickly damage the reputation of the newly listed company. To provide a framework for this delicate phase, financial law has made provision for specific mechanisms: stabilisation transactions and liquidity contracts. Although regulated, these tools are essential to a company's stock market life. Understanding how they work and their legal framework is essential for any manager wishing to master the consequences of his or her complete legal guide to initial public offerings. Stabilising share prices after an IPO Immediately after an IPO, a share's price can rise sharply,...
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