FSE Listings: Why are US companies avoiding the US economy by listing on European Exchange such as the Frankfurt Stock Exchange?
Thursday, August 11, 2011 @ 02:08 PM
FSE Listings: Why are US companies avoiding the US economy by listing on European Exchange such as the Frankfurt Stock Exchange?
- Listings within the US cost between 150k – 250k per annum to maintain
- Listings cost between 100-150k to list
- Listings within the US OTCBB markets minimum timeframe for listing is 6-12 months and doesn’t include capital raising or commitments
- US investors are impatient with their investments and want to see a liquid market before the 6-12 month period the average S-1 to DTC eligible trading OTCBB company is built, thus they push Directors to look to list elsewhere for liquidity and an exist strategy
- The US credit and loans market has dried up for many start-up and mid-sized firms, thus going public is the fastest way to liquidity to attract capital and loans based on shares as the liquid asset required versus revenue and hard assets. The public vehicle becomes the financial instrument.
- Listing on the Frankfurt Stock Exchange costs 60k euro as a listing alone, and ranges based on services required for raising capital.
- Maintaining a listing on the Frankfurt Stock Exchange is less expensive, ranging from 5k euro to 50k euro per annum.
- Frankfurt Stock Exchange listings take 3-6 weeks to complete from submitting the Issuer Form to first trade.
- European Investors like to hold onto their shares and look at the longterm investment both for tax purposes and vision of the firm.
- The environment is regulated by European Standards and is not subject to the US Sarbanes Oxley or SEC, FINRA requirements if structured with a European Holding company.
What is the next step for a US Company?
Contact us today to qualify your firm for listing on the Frankfurt Stock Exchange, Brad.mccarthy@fselistings.com.