Nominated Advisory Services for the Emerging Companies Market on the Cyprus Stock Exchange

Dr. Priscilla Mifsud Parker | Published on 11 Apr 2018

Cyprus  Nominated Advisory Services

The Emerging Companies Market (ECM) on the Cyprus Stock Exchange (CSE) is a multilateral trading facility that provides investment services and activities specifically designed for small and emerging companies. It is a non-regulated market regulated by the CSE, introduced within MiFID (Markets in Financial Instruments Directive).

Benefits of the ECM

The facility, that operates a simple regulatory regime, is particularly aimed at private companies looking for funding and easy access to the secondary market. It also targets investors wanting a new type of investment and public entities looking for alternatives to the regulated markets which generally come with high costs.

Companies wanting to float undergo an in-depth analysis of their business, where the Stock Exchange will assess the suitability of the company’s decision, whether it is eligible for admittance to the trading platform, and that it meets its obligations and filing requirements.

This said, listing on the ECM is easy and uncomplicated, and its requirements minimal. This makes it entices for those firms that wish to float on the stock exchange for the first time, avoiding the onerous requests usually asked for by the major stock markets. 

For example, there are no requirements as to the nationality of the company to be listed. Moreover, there are no minimum market capitalisation or shareholder equity requests. New companies without audited accounting period can also be admitted to the ECM. 

The ECM is the alternative that SMEs should be considering, if they would like to raise capital while benefitting from regulatory and tax perks, as well as low listing costs, in a recognised EU jurisdiction of repute.

Appointing a Nomad

Companies wishing to float should appoint a nominated listing advisor called a ‘Nomad’, a legal entity that will advise the business on compliance issues, continuing obligations and financial reporting, while representing the company during the listing process and ensuring its keeps up with the continuous rules and regulations of the market, after listing.

Our Nomad services

Chetcuti Cauchi Advisors’ specialist team of experts in all aspects of financial services puts us in the best position to assist discerning clients with tailored financial solutions that best meet their corporate needs.  
We offer companies wishing to float on the ECM unrivalled Nomad services, in the period preceding admission, and after admission to the ECM. 

Our services include:

  • Legal representation of the company with the Cyprus Stock Exchange;
  • A critical analysis of the company’s IPO proposal;
  • Preparation of documentation;
  • Ensuring compliance with the rules and regulations of the CSE;
  • Managing the listing procedure;
  • Monitoring progress and compliance of continual obligations;
  • Advising on risk management and market practice.

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