Why the Frankfurt Stock Exchange (Deutsche Boerse)
Why the Frankfurt Stock Exchange (Deutsche Boerse) Many readers have asked why list on the Frankfurt Stock Exchange, especially as foreign non-German companies. Many of those people are surprised to learn over 89% of the exchange is foreign listed companies, of which there is a vast network of global investors looking at new listings and new potential such as your firm. In bullet points though, the basic answers to that question include: Simple and cost efficient capital market access (cheaper to list) First Quotation Board, Entry Standard, General Standard and Prime Standard offer low admission and listing fees and the fastest admission process worldwide (fast to list) High market integrity and transparency enhance confidence of investors (strong investors) Electronic network in modern primary markets allows direct access to global investors Peer group visibility and low cost of capital Large and reputable peer group with listing alongside global brands (Your name beside the Majors or as a Major) Selection of sector indices and unique media visibility enhance investor awareness Lowest cost of capital and positive primary market sentiment (Green Energy, Mining, Pharma, etc) Strong liquidity (Be able to sell shares) Integrated product portfolio facilitates hedging, trading and arbitrage strategies Low transaction costs and highest trading activity in Europe attract investors Professional guidance and support I-POint: various information and services supporting issuers and candidates Deutsche Börse Listing Partner: financial markets experts Access to 120 million investor viewers on the stock exchange website Raise Capital, Enjoy Liquidity, Keep Costs Lower than on Any Other Exchange, such as TSX, ASX, or US Markets. Don’t hesitate to contact info@fselistings.com to see if your firm qualifies. List within a 3-6 week period. Let us prepare documentation for you and hire the right team to complete your listing in the fastest possible time. FSE Listings Inc is the “only firm” focused on the Frankfurt Stock Exchange listing process that completes all of the Requirements of the company under one Service Agreement. FSE Listings Consortium has listed companies since 1996.Specializing in UK, US, EU, Canadian, Australian, Chinese, Philippines, Vietnamese, Thai, Indian, and Central American companies. A Few More Benefits To Consider Of Listing On The Frankfurt Exchange: Exit with a higher valuation World’s reference market for Green Tech, Alternative Energies, Automotive, High Tech Engineering, Software, Life Science Large investor base and affinity due to strong peers Valuation knowledge by industry specific analyst coverage Unsurpassed liquidity enable post IPO exit opportunities Most liquid international exchange (spreads, turnover velocity and zero trade ratio) No restriction on existing shareholder selling shares No lock-up period required under German law Flexibility of exit strategy Speed of listing and transaction process Anonymity of ordinary bearer shares No disclosure of major holdings’ capital movements required in the Entry Standard XETRA®– the electronic trading system of Deutsche Börse is a pioneer in Europe 254 international trading institutions admitted – more than 4,600 traders in 19 countries interlinked in a virtual listing and trading world No difference in listing and trading shares and DRs Location of investors and analysts does not really matter anymore, 63 % of Investors coming from abroad Accessible investor types: Sector, size and country Investors Your company profile on Deutsche Börse Website www.boerse-frankfurt.com reach’s investors with over 120,000,000 page impressions a year 8 Motivations for an International Listing on Frankfurt 1. Investor Access & Valuation Access to the largest pool of UK, US, German and other international investors. Reach to sector specific investors by our pan-European trading network XETRA®. 248 trading institutions from 18 countries are directly connected. 2. Strategic fit & top branding Gain prestige and brand recognition by being listed alongside global market leaders such as Siemens, SAP, BASF, VW, Q-Cells, Qiagen. Strategic positioning alongside reputable peers and European M&A opportunities for entrepreneurs. 3. Sector Strength Strong investor focus of Deutsche Börse in Automotive, Renewables, Engineering, Life Sciences, Chemicals and Software/IT. High potential for better valuation through specialized sector analysts. 4. Visibility in Europe & index inclusion Inclusion in key indices like DAX International, MDAX, TDAX High visibility with first mover advantage for African companies in the regulated market. 5. Additional Liquidity Most liquid capital market compared to other exchanges, confirmed by a set of official studies (WFE, TU Munich, etc.). 6. Cost attractive Speedy process with balanced regulation for market access with fastest listing process. Lowest transaction costs and total floatation costs. 7. Speed to listing Listing on the unregulated market as fast as 3-6 weeks. The process is efficient and easy for entrepreneurs and venture companies. 8. Leverage of the Euro Currency Further economic studies show the rebound of the Euro currency. Speculation on currency returns could prove to be an additional increase in domestic shareholder value. Germany is the center of Europe for listing and a powerful catalyst for your business Europe’s largest economy with the largest consumer market facilitates a position within EU sales markets with 81.8 million. City of Frankfurt – The Home of the € The leading financial centre in continental Europe Euro share price and time zone offers compensation for EU employees European Central Bank, BaFin and Deutsche Börse No 1 Export nation worldwide Strategic and large M&A potential to acquire technology and new customers/ market shares A Listing delivers free marketing for your corporate development and builds a reputable partnership in the M&A scenery in Europe. Strongest Markets For Listing Deutsche Börse has the largest share of total capital raised in Alternative Energies, Chemicals and Software & IT among major European exchanges. Sector Strength of Listed Companies at Deutsche Börse + Strong Sector Peers indicate + Availability of industry specific Analysts and Investors ensure + Sector specific Valuation Know how and Understanding = Achieve a fair / best valuation Strongest Sectors: (According to the Deutsche Boerse) Alternative Energies & Green Tech Automobile & Suppliers HighTech Engineering & Machinery Life Science: Biotech, Medtech, Pharma & Healthcare Software & IT New Media Financial Services and Retail & Consumer Generate the most capital based on your true value: Get the attention of industry- specific analysts
Listing on the Bombay Stock Exchange
Information on listing on the Bombay Stock Exchange: From http://www.bseindia.com/about/abintrobse/listsec.asp Listing means admission of securities to dealings on a recognised stock exchange. The securities may be of any public limited company, Central or State Government, quasi governmental and other financial institutions/corporations, municipalities, etc. The objectives of listing are mainly to : provide liquidity to securities; mobilize savings for economic development; protect interest of investors by ensuring full disclosures. The Bombay Stock Exchange (BSE) has a dedicated Listing Department to grant approval for listing of securities of companies in accordance with the provisions of the Securities Contracts (Regulation) Act, 1956, Securities Contracts (Regulation) Rules, 1957, Companies Act, 1956, Guidelines issued by SEBI and Rules, Bye-laws and Regulations of BSE. BSE has set various guidelines and forms that need to be adhered to and submitted by the companies. These guidelines will help companies to expedite the fulfillment of the various formalities and disclosure requirements that are required at various stages of Public Issues Initial Public Offering Further Public Offering Preferential Issues Indian Depository Receipts Amalgamation Qualified Institutions Placements Click here to Download Guidelines A company intending to have its securities listed on BSE has to comply with the listing requirements prescribed by it. Some of the requirements are as under : [I] Minimum Listing Requirements for New Companies The following eligibility criteria have been prescribed effective August 1, 2006 for listing of companies on BSE, through Initial Public Offerings (IPOs) & Follow-on Public Offerings (FPOs): Companies have been classified as large cap companies and small cap companies. A large cap company is a company with a minimum issue size of Rs. 10 crore and market capitalization of not less than Rs. 25 crore. A small cap company is a company other than a large cap company. In respect of Large Cap Companies The minimum post-issue paid-up capital of the applicant company (hereinafter referred to as “the Company”) shall be Rs. 3 crore; and The minimum issue size shall be Rs. 10 crore; and The minimum market capitalization of the Company shall be Rs. 25 crore (market capitalization shall be calculated by multiplying the post-issue paid-up number of equity shares with the issue price). In respect of Small Cap Companies The minimum post-issue paid-up capital of the Company shall be Rs. 3 crore; and The minimum issue size shall be Rs. 3 crore; and The minimum market capitalization of the Company shall be Rs. 5 crore (market capitalization shall be calculated by multiplying the post-issue paid-up number of equity shares with the issue price); and The minimum income/turnover of the Company shall be Rs. 3 crore in each of the preceding three 12-months period; and The minimum number of public shareholders after the issue shall be 1000. A due diligence study may be conducted by an independent team of Chartered Accountants or Merchant Bankers appointed by BSE, the cost of which will be borne by the company. The requirement of a due diligence study may be waived if a financial institution or a scheduled commercial bank has appraised the project in the preceding 12 months. For all companies : In respect of the requirement of paid-up capital and market capitalization, the issuers shall be required to include in the disclaimer clause forming a part of the offer document that in the event of the market capitalization (product of issue price and the post issue number of shares) requirement of BSE not being met, the securities of the issuer would not be listed on BSE. The applicant, promoters and/or group companies, shall not be in default in compliance of the listing agreement. The above eligibility criteria would be in addition to the conditions prescribed under SEBI (Disclosure and Investor Protection) Guidelines, 2000. [II] Minimum Listing Requirements for Companies already Listed on Other Stock Exchanges The listing norms for companies already listed on other stock exchanges and seeking listing at BSE, made effective from August 6, 2002, are as under: The company shall have a minimum issued and paid up equity capital of Rs. 3 crore. The company shall have a profit making track record for the preceding last three years. The revenues/profits arising out of extra ordinary items or income from any source of non-recurring nature shall be excluded while calculating the profit making track record. Minimum net worth shall be Rs. 20 crore (net worth includes equity capital and free reserves excluding revaluation reserves). Minimum market capitalisation of the listed capital shall be at least two times of the paid up capital. The company shall have a dividend paying track record for at least the last 3 consecutive years and the dividend should be at least 10% in each year. Minimum 25% of the company’s issued capital shall be with Non-Promoter shareholders as per Clause 35 of the Listing Agreement. Out of above Non-Promoter holding, no single shareholder shall hold more than 0.5% of the paid-up capital of the company individually or jointly with others except in case of Banks/Financial Institutions/Foreign Institutional Investors/Overseas Corporate Bodies and Non-Resident Indians. The company shall have at least two years listing record with any of the Regional Stock Exchanges. The company shall sign an agreement with CDSL and NSDL for demat trading. [III] Minimum Requirements for Companies Delisted by BSE seeking Relisting on BSETop Companies delisted by BSE and seeking relisting at BSE are required to make a fresh public offer and comply with the extant guidelines of SEBI and BSE regarding initial public offerings. [IV] Permission to Use the Name of BSE in an Issuer Company’s Prospectus Companies desiring to list their securities offered through a public issue are required to obtain prior permission of BSE to use the name of BSE in their prospectus or offer for sale documents before filing the same with the concerned office of the Registrar of Companies. BSE has a Listing Committee , comprising of market experts, which decides upon the matter of granting permission to companies to use the name of BSE in their prospectus/offer documents. This
The Bombay Stock Exchange Announces IPO Index
Bombay Stock Exchange, Asia’s oldest bourse, on Monday launched an initial public offering (IPO) index to track the value of stocks for two years after listing. The BSE said its IPO index will track companies which have a free-float market capitalisation of at least 1 billion rupees rupees ($21 million) on listing day. The index started on Monday has 48 stocks. It will have at least 10 stocks at any point of time, with the maximum weighting for a stock capped at 20 percent, it said. The base date of the index is May 3, 2004 and the base value was set at 1000 points, the BSE said. The launch of the index comes as new share offerings are making a comeback in India after a gap of 18 months, helped by a stock market rally. The benchmark 30 share index has gained nearly 60 percent so far this year. Power utilities Adani Power and NHPC Ltd have raised a combined $1.9 billion since late July in IPOs and Oil India is expected to launch a new share offering in September. The BSE, founded in 1875, is launching new products to regain market share from the National Stock Exchange, which handles almost twice the volume and is the world’s largest single stock futures market. (For more news on Reuters Money click in.reuters.com/money)