When it comes to overseas Initial Public Offerings (IPOs), people will first associate them with enterprises and large groups. For Chinese companies, especially small and medium enterprises (SMEs), domestic IPO remains a challenge.
Therefore, an overseas IPO is the method of choice of larger successful businesses. Let us introduce the Europe Emerging Companies Market (EUECM), a new stock exchange market in Europe.
Its simpler listing rules and requirements together with a larger variety of listing options enable SMEs to get listed overseas more easily.
For this reason, a reporter from Bloomberg News interviewed Mr. Marios NigolaDies, the CEO of EUECM, on several issues such as the listing and financing of small and medium-sized enterprises in Europe.
Chinese enterprises going public in Europe
Bloomberg News: Which advantages does EUECM provide to Chinese enterprises?
Mario: The European economy is very strong and stable with positive growth for 23 consecutive years. Moreover, the European Union has a high reputation in the world, and it is a very popular investment destination. Besides, it is a very mature market and has been recognized by American and Chinese investors. The financial service industry is very developed, and there are several advantages to the banking system. Finally, the European Commission has close economic and social ties with Asia.
Bloomberg News: Many Chinese enterprises want to go overseas for IPO. With the increasingly close cooperation and exchanges between China and the EU, is EUECM ready to accept Chinese enterprises?
Mario: Many Chinese enterprises want to go public overseas because it helps them to improve their brands’ image. With the increasing bilateral trade volume between China and Europe and closer international relations, Chinese enterprises are also facing good opportunities to go public in Europe. Listings through EUECM will be a helpful step to these enterprises and EUECM can provide very unique and beneficial solutions for Chinese enterprises. We enable them to go public at the right time and place!
Many companies listed in EUECM are related to energy and minerals, and we have solid experience in these fields. Moreover, we have many measures to help innovative enterprises and small and medium-sized enterprises. EUECM also puts great importance in establishing good cooperation relationships with listed enterprises, to cooperate with industry professionals and experienced consultants. These cooperations allow us to better help enterprises grow successfully in the capital market.
Bloomberg News: How do you ensure the compliance of foreign enterprises with the European Financial Regulations?
Mario: The European emerging markets have a very stable, efficient and powerful financial market regulatory system. We know how the regulatory environment and regulatory system work together. EUECM complies with the EU financial instruments market directive (MiFID II) and the defined multilateral trading facility (MTF), regulated by the ESMA and CYSEC.
At the same time, EUECM also relies on the supervision of third parties outside the listed company, including accountants, lawyers, listed consultants and so on. They are responsible for ensuring the compliance of the listed company.
Mario: We want to serve small and medium-sized enterprises and start-ups in the best way we can. Therefore, it is very important to provide a good platform, a variety of helpful and high-quality services and to simplify the listing process. With our expertise in market compliance, corporate governance, and other related aspects, these SMEs can move towards a broader international market.
EUECM is the best place for companies with a market value of less than 100 million USD to go public. Growth enterprises and innovative development enterprises from all over the world are suitable for EUECM.
EUECM serves as a bridge so that private companies can gradually comply and go public, and eventually become a fully listed company, or even a multi-listed company that goes public in several parts of the world.
Can multi-place listing, stock trading be globalized?
Bloomberg News: Some enterprises may prefer investment from American investors. Does EUECM provide any assistance in this area?
Mario: Once the technology and capital of the enterprise have been globalized, then the exchange can also be globalized. After all, EUECM is a relatively small market. EUECM can help enterprises to enter the global capital market for financing.
We help enterprises to go on IM listing or compliance listing fast, at a low-cost and low-risk. Besides, we listen to the needs of the company and help them to access global capital markets, such as NASDAQ and other major NYSE stock markets at a fast track process.
If an enterprise goes directly to the US for listing, it will not only cost a fortune but also fail to meet the listing standards. EUECM has a certain incubation function. After listing in the US for some time, an enterprise can easily be listed in the main markets of the US and complete the listing in multiple time zones. Therefore, an enterprise can obtain such assets as NASDAQ and NYSE from the US, the Frankfurt Stock Exchange from Germany, and other places as desired.
Companies can also get investment from OTC and other investors. Investors in the United States can also trade their stocks. This way, investors in Europe and even the United States can choose their currencies for investment trading through middlemen in their time zone. Companies listed in the EUECM can access a large number of potential investors and stocks around the world. Time trading of multiple exchanges in time zones is also possible.
Bloomberg News: So, EUECM can be described as a link between enterprises and capital markets of developed countries?
Mario: Yes, about 80% of the companies that we list come from abroad. And 80% – 90% are innovative enterprises. This also shows that we are transforming from an emerging trading exchange to a global one.
We can turn privatized enterprises into public companies. We welcome enterprises to EUECM for listing. At the same time, we are also very open to connecting these enterprises to the global markets.
As stated earlier, enterprises listed in the EUECM can be listed in Europe and the United States to achieve multiple listings. The global mainstream countries recognize our trading rules, so the listing procedures in other places much easier. When an enterprise goes public in further countries, some steps can be synergized, and the cost can be greatly reduced. Only a few fees to fulfill the formalities need to be paid.