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Subscription price

What is the subscription price?

The subscription price (emissionskurs) is the price per new share in a new share issue — the amount an investor pays to subscribe for a share. It is set in the issue resolution and determines how much capital the company raises and at what valuation the new shares are issued.

Par value and premium

A share's par value (kvotvärde) is the share capital divided by the number of shares. The subscription price is often higher than the par value — the difference is called a premium (överkurs) and goes to a share-premium reserve in the company. A price above par means new investors pay a price that reflects the company's built-up value, not just its nominal share capital.

Subscription price and dilution

The subscription price determines how much existing owners are diluted. A low price raises less capital per share and causes heavier dilution; a high price reflects a higher valuation and gives less dilution for the same capital. For you as an investor, the subscription price is a reference point for the company's valuation.

FAQs

It is set in the issue resolution and based on a valuation of the company, often from the latest funding round, future prospects and negotiation with investors. Unlike listed companies, there is no ongoing market price to start from.

A premium is the part of the subscription price above the share's par value. The amount goes to the company's share-premium reserve and reflects that investors pay for the company's built-up value, not just the nominal share capital.

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