A prospectus is a legal document containing the details of an investment offering to the public.

The information, format, and content disclosed in a prospectus are regulated by the European Union (EU) legal requirements for a prospectus to help investors make educated investing decisions. Every company offering financial instruments (also known as the issuer) must comply with EU prospectus rules and customize its base prospectus to fit the needs of its potential investors, depending on the type of financial instrument.

A prospectus contains the information an investor needs before deciding whether to invest in the company’s securities (such as shares and bonds).

In general, a prospectus includes information about:

• A company’s main line of business, its finances, and shareholding structure
• The securities being issued and admitted to trading

In order for every investor to receive the same level of information, EU prospectus regulations ensure that suitable and similar disclosure standards are in place in all EU member states.

On Mintos, prior to offering public securities, a base prospectus requires the approval of Latvijas Banka, the central bank of Latvia, which is the national competent authority for financial markets in Latvia. After their approval, the European Securities and Markets Authority (ESMA) registers prospectus documents.

You can find all Mintos base prospectuses on our website, on the Latvijas Banka website, and on the European Securities and Markets Authority database/register.

There are several types of prospectuses used in various financial contexts. Here are some common types:

IPO prospectus: An IPO prospectus is used when a company plans to go public and offer its shares to the public for the first time. It provides detailed information about the company, the offering, financials, risks, and other relevant details for potential investors.

Bond prospectus: A bond prospectus is used when a bond issuer (such as a corporation, government entity, or organization) plans to issue bonds to investors. It contains information about the bond offering, terms and conditions, use of proceeds, issuer’s financials, credit ratings, and risk factors.

Mutual fund prospectus: A mutual fund prospectus is provided to potential investors in a mutual fund. It includes information about the fund’s investment objectives, strategies, fees and expenses, past performance, risks, management team, and legal and tax considerations.

Real Estate Investment Trust (REIT) prospectus: A REIT prospectus is used by a real estate investment trust when offering shares to investors. It contains details about the REIT’s investment properties, financials, distribution policies, risks, management team, and other relevant information.

Each type of prospectus serves the purpose of providing comprehensive information to investors to help them make informed investment decisions.