Offering restriction (private companies)

What is the offering restriction?

The offering restriction (Swedish: spridningsförbud), sometimes called the trading ban for private companies, is the rule in the Swedish Companies Act that a private limited company may not offer its securities to the general public, with certain exceptions. Its shares may not be traded on a regulated market either.

The offering restriction in capital raising

A private company can still raise capital from a defined group of investors; reaching wider usually requires a public limited company. In every new share issue, new owners are entered in the share ledger.