FSE Listings: A note on FSE Listings experience with global stock exchanges like the NASDAQ, TSX, OTCBB, ASX, AIM, PLUS Markets, and more
It is true, FSEListings.com’s stock exchange listings consortium has also listed over 30 firms on the TSX within our consortium, including building CPCs, selling CPCs, building TSX companies, selling TSX companies. We have also been involved with 100s of listings, such as building OTCBB companies, selling OTCBB companies, ASX, AIM, PLUS, CNSX and Frankfurt. Our consortium developed firms and or worked with firms that have literally listed over 2000 companies on the Frankfurt Stock Exchange. We are leaders in this field, and the most experienced professionals.
According to available information from the Frankfurt Stock Exchange its volume ranking is actually higher than that quoted by the World Stock Exchange reports, and with the new trading rules within Frankfurt as of May 23, we expect the exchanges volume to increase if not double if companies meet this requirement. As the premier group for listings globally (we run otclistings.com, stockexchangelistings.com, etc, for all the exchanges globally) FSE Listings Inc and our consortium have found the Frankfurt Listings to be more cost effective than any Canadian listings or US listings.
In addition, regardless of the other exchanges benefits of transparency for investors, the cost to new companies generally drives the businesses into shell status or depletes funds that could be used to develop the business effectively hindering investors placements to begin with… if I was an investor I would like to see funds going towards running the business not just keeping it public. The TSX, ASX, AIM, and OTCBB/NASDAQ being all over $100k per annum to maintain, even three times that when considering the legal, auditting, commitees that must be maintained and filing.
The TSX often is hindered by the requirement of broker warrants with financing options, and most of the listings are limited to initial support of listing and then the companies are on their own. Sometimes dual listing onto other exchanges helps the Canadian liquidity, but for the most part, a very small portion of their companies trade. (A few larger traders make up the majority of the TSX trading volume, a large iliquid market). The OTCBB also suffers the terminal disease of no trading or promotion which is regulated and for the most part a sure way to tarnish your business. Europe’s open regulations in terms of promotions, use of media, and disclosure requirements actually allow companies to get more positive exposure without the concern of negative outcomes. In addition, your stock price is not beaten down by warrants, brokers, and short selling aside from your market makers 2,000 shares on the bid and ask, the market is a natural market. Much healthier for public image. As you get into the higher boards, TSX not TSX.V or NASDAQ, not OTCBB, you do get a lot more natural markets. However it is costly to get there. The reality is you are right, there are other options to IPOs, such as mergers, acquisitions, and sale of assets, but IPOs and listings are not just exit strategies. We co-ordinate at least 10 mergers per annum for exit strategies, we are actually working on a few right now in the IT sector and power plant sector. Private firms that simply didn’t want to go through the process of listing, but essentially that’s an exit strategy. I however disagree with the notion going public is for only an exit strategy… that’s misinformed. Its to enable liquidity of the shares, it can be used as an exit, IPOs and the book making part of it could exit some founder shares and finance the firm, but the reality is its to:
- raise money
- gain exposure
- get international attention versus just the retail interest of your local market
- increase the value of your assets and business which were otherwise illiquid
- build a structure of which you can grow, use shares to acquire assets, and build a successful enterprise
Although it is an exit for some, there are many more benefits to going public. If you are a smaller enterprise with big hopes of growing, being financed, and someday allowing shareholders to exit, the fastest way is on the Frankfurt Stock Exchange bar none with FSE Listings Inc. No one can contest that. We list about 5-6 companies a month, 9-10 companies right now, but it varies. Trully if you want to list firms, merger with firms, build a public company to acquire assets and or other companies, increase the value of your firm, and have an exit… then a listing is probably the best option.
Although we have seen in the IT sector a lot of acquisitions as of late, most of it is purchase of websites and traffic, and building up large traffic bases in a specific market. That can be done, but organically, there may be 10 such opportunities you want to buy and getting public money would be the fastest. Thats just a simple roll-up example that a public company would be vital for.
Please contact us, we are probably one of the most effective firms for answering these questions and the most experience in general on all exchanges in the World. Sometimes the most effective way is to stay private and raise the capital. We can coach you through this process to with the end goal being a public offering or listing as discussed. You can start as low as 15k euro, which gives all the tools to raise capital and build your business.
The easiest way to get started is to contact us with your questions at info@fselistings.com