From research provided by the Nexia International, a leading global accounting and consulting network, said levels of corporate activity on global capital markets are showing signs of recovery but new listings or initial public offerings (IPOs) have not yet begun to accelerate significantly.
The reality is, that the majority of the study was on the mid-market stock exchanges, which take several months to list and become actively traded on such as the Hong Kong, NASDAQ, Euronext, and TSX, however the underlying principal is that “Beyond investor sentiment, the report said costs, regulatory and governance requirements of listings were still seen as the primary obstacles to mid-market listings.”
The Frankfurt Stock Exchange takes only 3-6 weeks to list a company, of which the costs are much reduced and the economic turnaround in Europe is the most apparent and likely for long-term recovery. The market recovery globally therefore should drive more listings on the Frankfurt Stock Exchange as the market with the least obstacles, access to capital, and affordable costs.
The report said any recovery would largely be led by institutional investors, with international funds flowing to relatively low geared investments. However, if one was to review the several 1000 institutional investors in the European market, their investments flow heavily into the German Financial market and inevitably to listings like yours. The private equity, capital, and recovery is in the Frankfurt Stock Exchange, companies from North America, from within the EU, and developing countries such as South Africa, Brazil, China, Russia, and India should be gearing their company to prepare for listing on the Frankfurt market.
Turnaround in markets that are heavily dependent on public listings relationship to institutional investors may recover slower, such as the Singapore market, with proportionally smaller numbers of retail investors. Companies in Singapore and similar smaller markets therefore should be turning to the Frankfurt Stock Exchange where the retail and institutional investor base is high, thus enabling their company to get financed and to have liquidity that is higher than that which they would get in the home market.
The Johannesburg Stock Exchange is another example of a market that is too small for the needs and demands of their local mid-market cap and small cap companies who should be looking to the Frankfurt Stock Exchange to take their company public.
“The report also said it was a matter of “back to basics” if companies were to attract investors, with essential investment criteria being a proven track record, strong management, scalability and the potential for attractive price earnings ratios.”
That goes for any company, listing your business is best when your company is a real business trying to raise real capital. If you are a real business looking to list your firm on an exchange that can take your capital requirements into consideration, than you should talk with info@fselistings.com. www.fselistings.com.
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