A recent notable achievement by PANGLOBE has been its appointment as an Emerging Companies Market (ECM) Nominated Advisor (NOMAD). PANGLOBE is the first Administrative Service Provider (ASP) regulated by the Cyprus Securities and Exchange Commission (CySEC) to become an approved NOMAD. PANGLOBE can now assist your company to list and manage its continuous obligations on the ECM of the Cyprus Stock Exchange.
The establishment of the ECM by the Cyprus Stock Exchange (CSE) has to a large extent come into being through the CSE’s efforts to further the development of its operations and increase its competitiveness to the benefit of all who participate in its market.
The CSE’s simplified listing requirements and low cost for companies makes participation in this market that much more appealing.
The general characteristics of the E.C.M can be summarised as follows:
- The market is unregulated meaning mandatory provisions such as strict listing requirements and continuous obligations are not imposed as in the case of regulated markets.
- It operates in accordance with the Regulative Decisions adopted by the CSE being that this market is considered a Multilateral Trading Facility (MTF). CySEC does however supervise the CSE as a market operator which operates a MTF.
- The CSE exclusively sets the listing requirements and continuous obligations of the issuers and Directors. The same applies for any sanctions to be enforced as a result of violation of the rules.
- Throughout the flotation procedure on the ECM, an issuer must have a Nominated Advisor.
- CySec will oversee the issuers regarding the publication of a Prospectus if this is needed.
There are a number of benefits that unlisted companies can derive from trading on the ECM:
- This market will promote the recognition and reputation of companies
- It will serve as an alternative method for securing finance at a competitive cost.
- It will prepare companies to transfer to the regulated market, if so required, through the gradual increase of the dispersion and velocity of their shares.
The ECM has in turn also created new channels of opportunity and increased revenue for Investment Firms as they are now able to expand on their products/services offerings.
For further information on the ECM and the listing requirements thereon please contact PANGLOBE.