How to Go Public on the Frankfurt Exchange
Be a qualifying company., Be aware that up to 100 percent of the owners’ shares will be “registered” and become free trading and listed on the Exchange, but these shares may be subject to a “lock up” agreement for a determined period of time to...
Step-by-Step Guide
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Step 1: Be a qualifying company.
To qualify, a company must meet the following basic criteria:
Be at least one year in existence.
Be privately owned (this is not a dual-listing for existing public companies, but is an IPO) Can be domiciled anywhere in the world.
Good financial statements in International or U.S.
GAAP format (but do NOT need to be audited).
At least 30 shareholders (if necessary, owners can gift small numbers of shares to family and friends to insure this minimum number).
A minimum of 250,000 Euros has been invested in the company (Paid-up capital).
Shares to be listed. -
Step 2: Be aware that up to 100 percent of the owners’ shares will be “registered” and become free trading and listed on the Exchange
, A company can expect a substantially higher public market valuation than would be attributed to it as a private concern.
For example, private companies are typically valued at a multiple of 3 to 5 times EBIT, whereas this same company, in a public market with liquidity of its stock, would have a valuation of 15 to 20 or more times EBIT and even development stage companies with no revenue or profits often have very high valuations as public companies. , Typically, once due diligence information has been fully delivered by the Company, the entire process takes 4-6 weeks to complete the listing and to commence trading. , Once trading commences, the Company will be taken on an extensive road show across Germany and Switzerland to expose the financing to appropriate groups with the expectation to secure funding commitments within one to two weeks.
The investor groups will buy new stock at a negotiated discount to the market price.
The cost of the road show is included in FSEListings.com’s fee, except for the travel and accommodation expenses of the representatives of the Company.
Also, you can expect an industry typical success fee payable upon funding.
Do a multi-city show:
Cities may include:
Zurich, Munich, Frankfurt, Düsseldorf, Berlin, Dubai and Abu Dhabi.
Hold face-to-face meetings with funding groups and strategic investors, arranged to generate substantial interest for the Company’s stock in major European equity markets.
Maximize results by handpicking the parties for each presentation to ensure the best possible fit between the attendees and the Company. -
Step 3: but these shares may be subject to a “lock up” agreement for a determined period of time to permit the financing to take place first.
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Step 4: Get a company valuation.
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Step 5: Raise Capital.
Detailed Guide
To qualify, a company must meet the following basic criteria:
Be at least one year in existence.
Be privately owned (this is not a dual-listing for existing public companies, but is an IPO) Can be domiciled anywhere in the world.
Good financial statements in International or U.S.
GAAP format (but do NOT need to be audited).
At least 30 shareholders (if necessary, owners can gift small numbers of shares to family and friends to insure this minimum number).
A minimum of 250,000 Euros has been invested in the company (Paid-up capital).
Shares to be listed.
, A company can expect a substantially higher public market valuation than would be attributed to it as a private concern.
For example, private companies are typically valued at a multiple of 3 to 5 times EBIT, whereas this same company, in a public market with liquidity of its stock, would have a valuation of 15 to 20 or more times EBIT and even development stage companies with no revenue or profits often have very high valuations as public companies. , Typically, once due diligence information has been fully delivered by the Company, the entire process takes 4-6 weeks to complete the listing and to commence trading. , Once trading commences, the Company will be taken on an extensive road show across Germany and Switzerland to expose the financing to appropriate groups with the expectation to secure funding commitments within one to two weeks.
The investor groups will buy new stock at a negotiated discount to the market price.
The cost of the road show is included in FSEListings.com’s fee, except for the travel and accommodation expenses of the representatives of the Company.
Also, you can expect an industry typical success fee payable upon funding.
Do a multi-city show:
Cities may include:
Zurich, Munich, Frankfurt, Düsseldorf, Berlin, Dubai and Abu Dhabi.
Hold face-to-face meetings with funding groups and strategic investors, arranged to generate substantial interest for the Company’s stock in major European equity markets.
Maximize results by handpicking the parties for each presentation to ensure the best possible fit between the attendees and the Company.
About the Author
Kyle Shaw
Brings years of experience writing about organization and related subjects.
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