FINANCIAL MARKETS SERVICES
1. Unregulated markets
We have recent experience with Public Offerings and Private Placement of securities in unregulated markets.
Emerging Companies Market (ECM), Cyprus
The ECM is an unregulated market of the Cyprus Stock Exchange (CSE). The market has a simplified regulatory environment and is specifically designed for the needs of small and emerging companies. The ECM is aimed at:
- Companies seeking funding and easy access to the secondary market
- Companies unwilling to incur the higher costs and stricter requirements of the regulated markets
- Companies aiming for cross-border distribution on the basis of private placement
- Investors seeking a higher yield investment opportunity
A Nominated Advisor (“NOMAD”) is needed to ensure that a company is appropriate for quotation on the ECM and to ensure compliance. A NOMAD must be retained at all times to advise the company and to ensure that it complies with ECM rules on an ongoing basis.
MeritKapital is a registered NOMAD. Our services include admission processing and sponsorship, as well as post-admission compliance and risk management services.
Third Market of Wiener Börse AG, Austria
In Austria, Wiener Börse AG operates the Third Market as a multilateral trading facility (MTF) pursuant to the Stock Exchange Act. The MTF is attractive to issuers that wish to list without the obligation to prepare a prospectus.
An application for listing must be submitted by a regulated European investment firm, such as MeritKapital. There are no provisions regarding issuing volumes or free float and we can facilitate depositing certificates with Clearstream, Euroclear and the Austrian central custodian OeKB.
2. Regulated markets
We assist in structuring and executing public issues on regulated markets. MeritKapital is licensed for the provision of underwriting services. These include:
- Underwriting debt on a soft-commitment basis
- Placement of equity securities through an initial public offerings (IPO) on the CSE and other EU stock exchanges
- Assistance in admission of new issued securities in the Euroclear and Clearstream settlement systems
In 2015, MeritKapital acted as lead manager in structuring the first ever debt offering denominated in Kazakh Tenge (“KZT”), which was admitted for settlement in Euroclear and Clearstream. The transaction was a landmark debt issuance for Kazakh entities and facilitated access to international investors with focus on soft currency debt instruments. The issuer was the largest commodities company in the region, a quasi-sovereign company owned by the Republic of Kazakhstan.