FSE Listings: Listing on the Open Market (First Quotation Board) of the Frankfurt Stock Exchange
The main listing requirements for the First Quotation Board are:
- Free float requirement (at least 30 initial shareholders)
- Minimum share capital of 500,000 Euro
- An ordinary share par value of 0.10 Euro
- An Issuer Data Form with supporting documents, such as Business Plan, 5 year projections, Auditor Verification of the details of the Opening Balance Sheet and share capital, etc.
A prospectus is not required, the issuer data form and supporting document, in addition to the share capital sufficiently clear the firm for listing on the Frankfurt Stock Exchange. The listing therefore does not require clearing through BaFin, where a prospectus does. The Issuer Data From pertains to where there is no public offering, that the company is primarily raising capital through Private Placement and exemptions that allow for capital to be raised. Some of these exemptions could include, owners of companies, investors with capital to invest over 50,000 euro, frequent investors categorized as Qualified, Sophisticated, and Accredited investors. The subscription agreement and jurisdiction therefore covers these requirements and the method of retaining the investors.
A Frankfurt Stock Exchange BaFin prospectus is applicable, where the Issuer Data Form allows for the companies to contact institutional investors and high-networth investors, the institutions are often limited to investment to companies that have successfully filed with BaFin a prospectus. A prospectus ranges from 30k-80k Euro on average, and depends per company and what is required by the Investment Bank and Broker Dealer. It is often not as simple as just building one to have one, this is partly why many companies build it after listing and at the requirement of a firm who will commit money. Meeting these firms are usually done through Roadshows, contacting investment bankers and designated sponsors over the Internet in Germany is probably the most ineffective way to progress. The best is to hire a firm, such as FSE Listings Inc’s partners to personally deliver the contacts to you and discuss the goals and requirements to invest in your firm after listing.
The Open Market Entry Standard
The Open Market Entry Standard is a little more complex with its requirements over the First Quotation Board, where by there is a minimum 1 year of corporate existence, free-float requirement (at least 30 initial shareholders), minimum share capital of 500,000 Euro.
In general, the requirements and obligations after listing a firm on the Entry Standard include publication of facts which may materially affect the market price of the issuer’s securities, audited consolidated financial statements not later than six months after the end of the reporting period, interim reports within 3 months of the end of the first half of the financial year.
Various listing committees, audit committees, and governance are recommended in order to prepare to move up the various higher levels of the exchange into the General and Prime Standard. We recommend to more clients to begin as an Open Market Frankfurt Listing with capital to build a prospectus as a development stage company and then progress to the upper tiers of the exchange. Recently several of the new listings on the General Standard were Entry Standard firms that progressed their listing.
Next Steps Your Firm Should Take…
Contact us with the following information on your firm:
- Company Name
- Contact Name
- Contact Number
- Amount of Capital invested to date
- Amount of Capital required
- Reasons for wanting to list
- Description of Business
- Website if available
If your firm is in one of these industries, feel free to contact one of the listing specialists directly:
- Real Estate
- Venture Capital firms
- Energy Companies
- Financial Services
- Environmental Remediation and ECO-firms
- Green Companies
- Oil and Gas
- Forestry, Timber, Lumber
- Biodiesel and Biofuels
- Consumer Sector
Brad McCathy’s specialty included Real Estate Frankfurt Listings, Mortgages Frankfurt Listings, Venture Capital firms Frankfurt Listings, Energy Companies Frankfurt Listings, Financial Services Frankfurt Listings, Telecommunications Frankfurt Listings, Biotechnology Frankfurt Listings, Biotechnology Frankfurt Listings, Environmental Remediation and ECO-firms Frankfurt Listings, and Green Companies Frankfurt Listings.
Robert Russell’s specialty is Aviation Frankfurt Listings, Bonds Frankfurt Listings, Construction Frankfurt Listings, Mining Frankfurt Listings, Oil and Gas Frankfurt Listings, Forestry, Timber, Lumber Frankfurt Listings, Biodiesels and Biofuels Frankfurt Listings, Media Frankfurt Listings, Energy Sector and Consumer Sector Frankfurt Listings.
Contact FSE Listings Inc today!