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 provide three years’ audited annual accounts unless it has been operating for a shorter period and other exceptions may also apply although there must be sufficient information available to enable an adequate assessment of the issuer’s financial position
- Directors must provide a statement certifying that the company has sufficient working capital for at least 12 months or otherwise, how they propose to provide such capital to ensure its continued ability to trade
- The expected market capitalisation of securities to be listed must be at least £1,000,000 except where securities of the same class are already listed or otherwise agreed by our market authority
- At least 25% of shares of the class to be listed must be in the hands of the public in such proportions so that there will be an adequate market in the securities although our market authority may permit a lower percentage if the market will still operate properly given the large number of shares and the extent of their distribution to the public or there are other factors which ensure that the shares are suitable for listing
Ultimately, upon listing and throughout the life of the listing, the issuer must provide sufficient information, financial or otherwise, so that (potential) investors are fully informed of all material factors which might affect their interests.
Further information about listing trading companies on The International Stock Exchange can be found in Chapter 6 of the Listing Rules.
To view the PDF flyer of this content click here.