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Raising Capital and I.P.O. in Frankfurt London Registrars has assisted several companies who intend to raise capital on the Open Market of the Frankfurt Stock Exchange, Germany (the Deutsche Börse).
More and more SMEs in the USA and other countries are seeking admission to trading in the Open Market segment of the Frankfurt Stock Exchange using an English plc as the vehicle for doing so, thereby avoiding (in the case of the USA) the stricter regulations under Sarbanes-Oxley. The Open Market provides small and medium size companies with fast, simple, low-cost point of access to a stock market. Using an English plc will allow the company to retain a unitary board structure as is the custom in the USA, as well as all the advantages of an English plc such as credibility and a competitive tax environment.
Listing on the Franfurt Borse
The Frankfurt Stock Exchange (‘the Deutsche Börse’) is the world’s third largest trading exchange, ranking behind the New York Stock Exchange (‘NYSE’) and NASDAQ. It is the listing home for public companies from more than 80 different countries in the world, with companies from North America making up almost 40% of the total companies listed. More and more companies from various countries, particularly the USA, are choosing Frankfurt in preference to their home country’s stock exchange for the numerous reasons, including global investor reach affording companies massive exposure to investor capital, the highest liquidity for securities traded in Europe, a fast listing process, low costs for going and remaining public, and a well balanced regulatory environment. The Deutsche Börse offers two types of capital markets: the Official Regulated Markets which are EU regulated based on the EU transparency standards, and the Open Market, formerly known as the Unofficial Market or ‘Freiverkehr’. The Official Regulated Markets are divided into the General Standard and the Prime Standard, the latter having more stringent reporting requirements. In contrast to the Official Regulated Markets, the Open Market is not an official market segment, but is self-regulated by the Deutsche Börse itself, and is established under private law.
Following the recent decision of the Deutsche Börse to close the First Quotation Board, the Open Market now consists of the Second Quotation Board and the Entry Standard.
Companies which are officially listed and regulated at their respective home stock exchange use the secondary listing offered by the Second Quotation Board to enhance and increase trading volume in their stock. The Entry Standard is for companies looking for an initial and primary listing at the Deutsche Börse and who wish to position themselves more clearly on the capital market. Consequently more stringent reporting requirements are placed on Entry Standard companies to ensure increased transparency for investors. The Open Market is unrestricted in the types of securities listed and besides German shares, foreign shares (currently from over 60 countries), bonds from German and foreign issuers, certificates and warrants are traded on the Open Market.
London Registrars services
UK PLC listing on the Frankfurt Borse:
London Registrars, in association with a UK accountancy partner, a listing partner in Germany and a financial advisor in the USA, are able to offer a one stop service to cover all possible requirements when it comes to a UK PLC listing on the Frankfurt stock exchange. This includes company formation, corporate compliance, listing/IPO and admission to trading in the Open Market (and not forgetting fundraising after the IPO).
London Registrars services start with our core service of acting as the company secretary, which is a statutory requirement for PLC companies in the UK. In addition we provide
If any of the above is of interest to you, we will be happy to further discuss your requirements with you. Please contact Peter Driver on +44 20 7608 0013, email peter@london-registrars.co.uk or click on the ‘contact us’ tab at the top of this page.
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