subject: What It Takes To For A Company To Go Public In Europe [print this page] There are different ways to take a company public in Europe. This is not an easy task. It may take a long process to meet the standard requirements. A company may try to consult investment firms that can help them take their business public and go through the whole process. There are 3 major processes that a company needs to go through if they want to go public in Europe. They are Market Segment, Admission process and Audit process.
In the process of market segmentation, there are 3 classifications to consider. These are Entry Standard, General Standard and Prime Standard. Entry standard offers a simple and cost efficient way to list shares in transactions that are suitable for small and medium-sized companies. General standard and prime standard on the other hand have the highest European requirements and are suitable for huge companies.
The advantages of Entry standard are: easy access to European capital markets, low listing fee and deep liquidity pool. The requirements for this market segment are that the management report both in English and German, submit audited financial statements and a report that is published annually.
If a company wants to be included in a General Standard, a company must meet the regulations for the European regulated market including the following: a management report and an interim report, and audited annual financial statements. Prime standard is the highest transparency in Europe. There are additional requirements needed for Prime standard and one of these is the publication of a current corporate action timetable on the Internet.
The simplest and quickest ways of going public in Europe relating to the admission process is by Entry Standard. The documents that are needed are as follows: application form, issuers declaration of consent, annual financial statements and others. Companies may choose from two alternative application formats for admission. It may have a public offering with prospectus or without a prospectus for private placement. For a first time registrant under the General Standard, it is required to file together with a bank or financial service institution that is approved by European exchange.
For Entry Standard, it is required to issue audited annual financial statements that include a management report. For Prime Standard and General Standard, it is required to issue audited financial statements with a management report and an interim report.
by: May Smith
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