LISTING IN THE EMERGING COMPANIES MARKET IN CYPRUS
LISTING ON THE EMERGING COMPANIES MARKET (ECM) OF THE CYPRUS STOCK EXCHANGE (CSE): -
The ECM is a Non Regulated Market operated by the CSE offering trading platforms for shares, bonds and depository receipts. It is classified by the Cyprus Securities and Exchange Commission (CySec) as a Multilateral Trading Facility (MTF) and as such does not fall within the regulatory framework of the regulated markets. Instead, it operates in accordance with the regulatory decisions adopted by the CSE. The concept of an MTF was introduced within the Markets in Financial Instruments Directive (MiFID). It is a flexible and serious alternative for the smaller to medium sized enterprises looking to raise capital or to take advantage of special regulatory and tax incentives available to listed companies, all within a reputable EU jurisdiction.
BENEFITS OF LISTING SECURITIES ON THE ECM: -
The ECM offers trading platforms for shares, bonds and depository receipts. It is a great choice to attract finance for smaller growing companies as well as for well-established, mature organisations. It combines the benefits of a European recognised stock market as it is operated by the CSE but with less strict listing requirements and continuous obligations since it falls under the definition of a multilateral trading facility. Moreover, a simple listing procedure and low listing and annual costs compared to other jurisdictions make the ECM a competitive listing option for any company whether local or foreign. It is also an alternative option for already listed companies that are not able or willing to undertake the higher costs of remaining in a regulated market.
ECM LISTING REQUIREMENTS: -
The listing requirements vary according to the type of security to be listed. These include but are not limited to that the issuer:
is duly incorporated and operational;
appoints a Nominated Advisor;
has power to issue specific securities for which the application is submitted;
proposes the listing of titles whose transfer is free;
is ready for handing over its Registry to the Central Depository and Registry.
has prepared audited financial statements;
has operated regularly and had relevant activities for at least 2 financial years prior to listing unless it is an emerging company which satisfies the CSE that it provides satisfactory information so that the investors can evaluate the value of its titles;
that the securities shall be held by a satisfactory number of investors;
in the case of listing of bonds that the prospective issuer proposes for listing securities whose total value is greater than €200.000,00.
* It must be noted, that the above requirements are not exhaustive and that the CSE retains the right to add/request for additional listing requirements from a prospective issuer on a discretionary basis.
HOW KINANIS LLC CAN HELP: -
Preparation and submission of all necessary documents in relation to the listing.
Provision of services of Nominated Advisor.
Incorporation of a Cyprus private/public company.
Full legal, administrative, management and accounting support for the lifetime of the company.
For more information, please request our detailed publication on www.kinanis.com.
Kinanis LLC, a law and consulting firm, is one of the leading business law firms in Cyprus. The firm has been advising international investors and private clients on all aspects of law, tax and accounting for over 33 years. We are an innovative multidisciplinary firm providing a full range of services combining law and accounting with the extensive expertise to ensure that our clients will obtain the best possible spherical advice.
This publication has been prepared as a general guide and for information purposes only. It is not a substitution for professional advice. One must not rely on it without receiving independent advice based on the particular facts of his/her own case. No responsibility can be accepted by the authors or the publishers for any loss occasioned by acting or refraining from acting on the basis of this publication.
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