Listing an IPO on the Frankfurt Stock Exchange versus a reverse merger into a Frankfurt Shell Company
Listing an IPO on the Frankfurt Stock Exchange versus a reverse merger into a Frankfurt Shell Company
To purchase a Frankfurt Shell Company that is publicly traded on the Frankfurt Stock Exchange, it costs between €120,000 and €150,000. Generally these shells are UK, Swiss, and German companies that are the shells. Regardless of the Frankfurt shell company for sale`s vendor telling you that the company has had no operations, due diligence with the local tax authorities, credit bureaus, and background checks are required, the assistance of Auditors or Accountants, and of course a merger Lawyer. The total expenses quickly become and extra €50,000 or €200,000 and the timeframe is stretched out over 2 months to go public. This of course is the cost of purchasing a public company, which most people do in order to avoid the €500,000 paid-up money in by shareholders required by the Frankfurt Exchange. If the cost of the acquisition can be kept within the €150,000 range all-in, for some firms this will be worth it. However, it is my opinion that listing on the Frankfurt Stock Exchange newly is a more effective and less expensive route.
One route would be to raise the €500,000 and list on the Frankfurt Stock Exchange, which only takes 3-5 weeks, a faster route than a reverse merger.
The second option is if your firm already has the invested capital over the lifespan of the company, it can list without having to raise additional capital until after listing.
The third option is to merge or purchase a company that has the paid-in capital component and list this company which may be less expensive and just as quick as a reverse merger.
The cost of listing a company on Frankfurt is estimated at 60,000 euro after company organization, listing fees, legal, and advisors are all paid out to the point of trading. Thus, by purchasing a company that has had the capital-in requirement of 500,000 euro for anywhere under 40,000 euro, you will be able to list as a publicly traded company inside of 3-5 weeks for under 100,000 euro and meet the requirements of the Frankfurt Stock Exchange.
We have numerous examples of the fast paced listing of companies on the Frankfurt Stock Exchange. Upon preparing the necessary accounting documents that show the proof of funds, www.FSEListings.com will take your business plan and information to a series of Venture Capital and IR firms who will confirm they can raise capital and or create liquidity for your firm if listed on the FSE. The Investment Capital will be from 1 million euro to 10 million euro with liquidity for shareholders. At this stage, our listing partners and financial advisors will be paid a nominal fee of 60,000 euro to list the company and prepare the initial introductions.
Once the company is listed, the IR and Investment Companies will execute a strategy for the company. Some of the financers will invest debt instruments up to 5% of the companies market cap. There are many opportunities and options to properly finance your company once you are on a strong recognized European stock exchange.
Taking a primary listing on the Frankfurt Stock Exchange is an essential component to your companies success moving forward. www.fselistings.com is also associated to www.stockexchangelistings.com and www.otclistings.com which have an in depth network of companies and financers that can assist you to raise capital once you have dual listed into the other markets. Start with listing on the Frankfurt Stock Exchange today, contact info@fselistings.com.
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