Listing Trading Companies
The International Stock Exchange is a convenient and cost-effective option for listing trading companies, especially growing businesses seeking a marketplace which will enable them to build profile and access capital.
TISE is well placed to meet any of these needs for companies from around the world, with domestic segments for those from the Channel Islands and the Isle of Man. The Exchange is particularly attractive for Small and Medium sized Enterprises (SMEs) as the competitive fee regime allows an earlier entry point to listing and therefore boosting profile compared to other exchanges.
The owners of a trading company may seek to list its equity on an exchange for a number of reasons. These might include one or more of the following:
- enhanced prestige and profile for the owners and their business
- access to a new pool of capital which will help take the company to the next stage of its development
- demonstrable adherence to standards of transparency and governance
- provision of a stepping stone to a listing on another major global exchange
- route to exit
A listing on TISE enables companies to raise their profile among and access finance from investors globally, including those who are only mandated to invest into listed products. We also have a number of international recognitions which further widen the potential investor base. However, a TISE listing offers these advantages while being cost effective and through a regime which is proportionate to the size of the company. Being an exchange which is based in the European time zone but outside of the EU allows us to provide a pragmatic offering.
Key benefits » Enhanced profile » Access to international capital » Incubator exchange
At the same time, a listing on TISE enables a company to demonstrate that it adheres to the standards of transparency and governance of a regulated market. This is comforting to investors and is important for the future development of the company. The convenience of TISE allows a company to become familiar with the requirements of being quoted so that – once it has grown – it is better prepared for the transition to being listed on a major global exchange, where appropriate.
Companies may also seek a dual listing on TISE, alongside another exchange, as this provides for a flexible investor strategy, including fundraising in different geographical areas.
In addition, TISE is also particularly advantageous in terms of convenience and cost-effectiveness for listing a trading company’s (convertible) preference shares, warrants or (convertible) debt.
New applicants may bring securities to listing by means of an introduction, an offer for subscription, an offer for general sale or a placing.
Generally, the Exchange must deem the issuer and its business as suitable for listing and be satisfied that there is an adequate and open market in the securities for which a listing is sought.
The other main requirements are as follows:
- The issuer must have three years’ published audited accounts, although our market authority has discretion on how this requirement is applied
- A new applicant must be a business which is independently revenue earning for the period of the accounts provided
- There is a minimum market capitalisation of £500,000, although a lower value may be permitted if our market authority is satisfied that there will be an adequate market
- At least 25% of shares must be in the hands of the public, although our market authority may permit a lower percentage if there is a sufficient number of shares in issue to make a market
A further requirement is for the Directors to provide statement certifying that the company has sufficient working capital.
Further information about listing trading companies on The International Stock Exchange can be found in Chapter 6 of the Listing Rules.
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