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Listing on the Emerging Companies Market of the CSE

Fidescorp Limited > News > Listing on the Emerging Companies Market of the CSE
Listing on the Emerging Companies Market of the CSE

Cyprus Stock Exchange’s Emerging Companies Market (“ECM”) is similar to the AIM for the London Stock Exchange. As an added advantage, it is a Multilateral Trading Facility (MTF) as defined by the EU’s Markets for Financial Instruments Directive (MiFID) and operated by an EU regulated Stock Exchange.

In contrast to AIM and other main stock exchanges, listing on ECM is relatively straight forward, simple and with easily-met requirements, making it an attractive choice for companies that seek to be “listed” without having to meet excessive requirements, or as a first step before going to other major stock markets.

The listing of a company on the Emerging Companies Market can be achieved either by public offering or through private placement, or by combination of the two.

The Key benefits of Listing on ECM include:

  • Speedy listing process and competitive listing costs; timeframe for listing can be no more than two weeks if all material is in place
  • Possibility of easy transition to other global exchanges such as the AIM exchange in London
  • Provision of an ISIN from the CSE through which global investors may access information about the listed share on data platforms such as Bloomberg and Reuters
  • No requirement for daily volume
  • No maximum ownership rules
  • No minimum market capitalization criteria
  • Relatively flexible listing requirements and subsequent ECM rules thereafter
  • Listed companies on the ECM can capitalize on the tax benefits of the EU jurisdiction of Cyprus
  • Leveraging on potential investors such as pension funds whose investments may be restricted to solely listed securities
  • Ability to list various types of financial instruments

To be able to list, a company must satisfy the below requirements:

  • Have at least 10 shareholders. A major shareholder can hold up to 99% of the shares and the rest split between at least 9 other shareholders.
  • For a Cyprus company, a minimum share capital of €26K is possible but €100k is advisable
  • Audited financial statements for at least two years must be available
  • New companies should provide a business plan and financial projections for at least two years
  • There should be a minimum of three directors; one executive director and two non-executive directors. The majority of directors should be tax resident in Cyprus.
  • A Nomad (Nominated Advisor) is required, responsible for the listing and for ongoing compliance with the ECM Rules for Companies subsequent to the admission of the plc, as well as a legal advisor.

If you are considering listing to the ECM, it is essential that appropriate professional advice is obtained. Fidescorp Ltd will be glad to assist you in this respect and explain listing requirements and ongoing obligations in detail. Please do not hesitate to contact us.