Frankfurt Exchange

The Frankfurt Stock Exchange is divided into 4 tiers called “segments”, as follows:
  1. Quotation Board (dual listings only)
  2. Entry Standard
  3. General Standard
  4. Prime Standard
Effective in 2012, the “Quotation Board” (formerly the Second Quotation Board) is available for dual listings only and the First Quotation Board segment is closed to new admissions.
The “Entry Standard” is the segment with the least stringent reporting requirements and the Prime Standard is the segment with the most stringent reporting requirements. Moving up through the segments is relatively seamless (compared with a graduation from the OTCBB to the NASDAQ in the US, for example) since all of the segments are part of the same Frankfurt Stock Exchange.
There are two types of capital stock markets in the European Union:
1.  EU-regulated markets (the “Regulated Market”) which, as the name implies, is regulated by EU law and;
2.  Self Regulated Markets (the “Regulated Unofficial Market”), which are regulated by the stock exchange itself, and governed by private law rather than EU law.
The Quotation Board (dual listings) and the Entry Standard segments belong to the Regulated Unofficial Market while the General Standard and Prime Standard segments belong to the Regulated Market. The Regulated Unofficial Market is also sometimes referred to as the Exchange Regulated Market or, more commonly, the ‘Open Market’ because it is self-regulated by the Frankfurt Stock Exchange, rather than by the EU.
Regulated Unofficial Markets:
  1. Quotation Board
  2. Entry Standard Segment
EU Regulated Markets (based on the European Union transparency standards):
  1. General Standard Segment
  2. Prime Standard Segment
Many companies enter the market on the Entry Standard with the goal of graduating to the General or Prime Standard segments, once they qualify.

To qualify, a company must meet the following basic criteria:

  • Minimum age of company—2 years
  • Minimum 30 shareholders
  • Company must provide evidence of a minimum nominal capital of €750.000 (EUR or its equivalent in another currency at the exchange rate on the date of confirmation) paid-in-capital and the nominal value of the shares must not be less than €1.00 (one euro);
  • 10% minimum free float shares • Audited financials (National GAAP or IAS/IFRS US-GAAP, et. al.), prepared locally, for the year prior three years, or less if the company is not three years old;
  • Approved Prospectus
  • And other listing documents, forms and requirements.

Shares to be listed

Up to 100% 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 permit the financing to take place first.

Company Valuation

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   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.

Time for Listing/Trading

Typically, once due diligence information has been fully delivered by the Company, the entire process takes 4-6 months to complete the listing and to commence trading.

Raising Capital; Investor Road Show

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.

Multi City Show: Cities may include: Zurich, Munich, Frankfurt, Düsseldorf, Berlin, Dubai and Abu Dhabi.

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.

Maximized results by handpicking the parties for each presentation to ensure the best possible fit between the attendees and the Company.

Submit Your Company For A Free Evaluation

Please include:

  • Company Name
  • Contact Name
  • Contact Number
  • Contact Email
  • Amount of Capital invested to date
  • Amount of Capital required
  • Reasons for wanting to list
  • Description of Business
  • Website if available

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