FSE Listings: Why Australian Companies Primary and Dual Listing on the Frankfurt Stock Exchange?
Australian Companies Primary and Dual Listing on the Frankfurt Stock Exchange?
Do you want to take your company public on a European Stock Exchange? There are many different providers in the marketplace but most of them ask for exorbitant upfront fees. You will find so-called German Stock exchange listings specialists and sponsors in Dubai, UK, Switzerland, Germany, even Australia and Canada, but for the most part they overcharge upfront and take months and months to list your company.
A Primary Listing generally will cost under EUR 100,000, however, the minimum Sponsor upfront cost should be EUR 20,000 and all other expenses should be paid out invoice by invoice directly from the private company wanting to list their shares on the Frankfurt Stock Exchange.
A Dual Listing of an existing ASX or NSX company should be no more than EUR 10,000 upfront fee, which would be your total cost of Dual listing your firm.
Therefore you can dual list for only EUR 10,000 and start a primary listing process with a commitment of only EUR 20,000.
For a proposal for your company, contact Ryan@Businesslistingsgroup.com. Our consortium at FSE Listings Inc has listed more companies than any other provider on the market (over 1,000).
Australian Stock Exchange not worried about German shift
The ASX does not think there has been a drift by Australian companies from the ASX to Frankfurt but admits it needs to do more to attract small to mid-cap companies to list. However with listings costs starting at EUR 20,000 for new companies listing on the Frankfurt Stock Exchange, the Australian Stock Exchange should be nervous, when the average listings cost on the Australian and NSX markets including the sponsor brokers, listings costs, and reporting requirements is costly for new companies who simply want a listing in a reputable stock market. (AUD 300,000+ and costly reporting requirements)
Richard Murphy, general manager of capital markets at the ASX, said the number of Australian companies listed in Frankfurt did not represent a drift from the ASX to Frankfurt as the majority of the Australian companies listed on the Frankfurt Stock Exchange had not sought a listing there. (Source: SmartMoney)
“They are not actual listings on the Frankfurt Stock Exchange, what has actually been happening is that [the exchange] just started quoting stocks and they simply put them up,” says Murphy. “Frankfurt has been marketing over here as has the Munich Stock Exchange more aggressively.”
What he is referring to is the dual listing of Australian Stocks on the Frankfurt Stock Exchange, which only costs EUR 10,000 to complete. (www.businesslistingsgroup.com)
“The theme all around the world is that companies of every size are being traded all over the world in very different ways,” says Murphy.
“We have decided many times not to set up an entry board or an alternative investment market, nobody wants it as you are looking for trouble down the line by setting it up.
Murphy acknowledged that there were often liquidity issues for smaller and mid-size companies listing on the ASX.
The Frankfurt Stock Exchange offers that opportunity to create liquidity by dual listing the ASX listed company on the Frankfurt Exchange. Or new companies looking to list can make their primary listing in Frankfurt versus Australia, lowering their costs, listing requirements, and providing less liquidity issues that are seen in the ASX and NSX markets. The ASX has no intention to market to the SME market as stated, Murphy defended the ASX’s decision not to open a second listing board saying companies had said they liked a single, high profile, high quality board where everyone must comply with minimum standards. This decision has put out of reach listing for many small and medium companies, therefore, these Australian firms should realistically be looking to Frankfurt to arbitrage the decision of their local market for the least cost, most viable, liquid market of Frankfurt.
There is a clear advantage of Australian Companies listing on the Frankfurt Stock Exchange, most of the small businesses in Australia are very small and have a small number of shares on issue which are tightly held by the people that started that company. The people who have invested are like venture capital investors, who have grown the mining company, fintech company, medical firm, and business to a certain size that they would like to raise more capital or create a liquidity event by going public. The requirements of 400 shareholders, and costs of listing in Australia do not offer an easy answer, but the Frankfurt Stock Exchange encourages these businesses, with a huge appetite historically for Australian based companies.
In comparison to the NSXA and BSX, who have been shunned by business owners such as Morffew who say there is “no liquidity whatsoever” on the secondary boards, the Frankfurt boasts one of the most liquid markets in the World. (Listing fees starting at EUR 20,000 with www.businesslistingsgroup.com, the leading listing group for Frankfurt listings under their wholly owned brand name www.FSEListings.com)
Emlyn Scott, chief executive of the NSXA, concedes a lack of liquidity is an issue for the exchange and one he is seeking to address six months into his role as chief executive. He claims the ASX has similar liquidity concerns, saying “liquidity down the bottom end of the ASX is a very long tail”. Scott says it is “astonishing” to hear of the number of Australian companies listing on the Frankfurt stock exchange. “We want to be the best listing exchange, we need to provide good secondary trading but to do that we need to aggregate our companies to encourage them to trade on other markets.” (Source SmartMoney)
With those words of encouragement to dual list ASX, NSXA, and BSX Australian Dual listings on the Frankfurt Stock Exchange, it is no wonder Australians are rushing to the Frankfurt market.
Ideal for mining companies, Fintech, Financial Services, Software, Medical, Recruitment, Property/Development, farming, Pharmaceutical, Energy, and most industries. With over 800 Australian companies having sought dual listings, the formula is no secret to those who know they need a dual listing in Frankfurt. Dual Listings start at EUR 10,000, of which professional public relations work can be sourced and budgeted for primary goals of the company through
Business Listings Group (www.businesslistingsgroup.com)
About Gaining Long Term Investors from Europe
European investors tend to invest and hold their shares for a minimum of 1 year on average, which is a very attractive “suppy” and “demand” proposition for a public company which has a limited supply of shares to trade in the market (Issued Public Float). Therefore, this adds to both price stability, and maintaining solid value in the company.
“They very much take a long-term strategic view on investments. They’re not traders. Once they invest, they’re very sticky. They’re interested to know what the strategy is, what the long-term play is” says Luke Reinehr, CEO and chairman of Kalamazoo Resources.
In the first half of this year, Frankfurt OTC transactions involving Australian shares totalled just under €150 million ($247 million). Considering the market, this is a great opportunity for Australian Companies, as this is EUR 150 million likely out of their float for up to 1 year.
“If the market is correcting in the mining sector, the Canadians and Australians will sell first and the Europeans will hang onto their shares because of their mentality – they are long-term investors,” says Wolfgang Seybold, chairman of German investment and investor relations firm Axino.
If you Build it will they Come?
As a Business Listings Professional and owner of www.stockexchangelistings.com, www.asxlistings.com, www.fselistings.com, www.businesslistingsgroup.com, and many more sites with over 20 million viewers per month and a European database of over 3 million investors, we understand what it means to get seen as a company and what that means to your listing on the stock exchange.
If Australians really want to attract German investors and bolster their shareholder base with long term investors from Europe, it is not enough to just “have a broker” to “make the market” in the stock as a Market Maker.
Ryan Gibson of Business Listings Group Ltd in the London, New York, Frankfurt, Johannesburg, Perth, and Toronto Canada states, “Companies will come to us and expect for EUR 10,000 dual listing of their Australian companies, that just by dual listing the investors will find them. As I explain to companies, when you go public it is like you are running two businesses, one is the day to day operations of your regular company, selling that product or service, and the other company you run is the Public company, which involves your strategy to bring value to your shares and shareholders, and selling and marketing the stock listed on the exchange. They are dependent upon each other, but they are both full time jobs, and every CEO must be prepared for this and budget appropriately.
Ryan Gibson, a Stock Exchange Listings specialist for over 20 years mentioned that the budget of such marketing could be 20,000 euro for a month, 50,000 euro for 3 months, or maybe it’s the minimum amount of 5,000 euro per month simply to keep eyeballs and press. However, it must be budgeted for the best result for the company, or they will have the same fate of just listing on their home NSXA, BSX, or ASX illiquid markets. (www.businesslistingsgroup.com)
“What you find with a lot of Australian companies is, they just get the dual listing and then they think investors will find them,” says Matthew Reynolds, a Frankfurt-based Australian with German advisory firm DGWA. “Basically they don’t: unless you get out and engage with the German stockholders and the media, then investors are not even going to look twice at a company.”
Charles Van Musscher, www.businesslistingsgroup.com, also says that a roadshow has always been a very important part of engaging with investors in the German market, and is something most Australian companies need to be prepared for. With Corona-Virus now a part of our daily life, strategies for online roadshows, investors meetings on Zoom, and virtual introductions needs to suffice until CEO’s and their teams can take a flight into Europe.
“I have done a fair bit of marketing in Germany and Switzerland, because there was interest in that part of the world in what we’re doing,” says Keith Coughlan, executive chairman of lithium miner European Metals Holdings.
Reinehr agrees: “You’ve got to go and press the flesh and speak to potential investors. We have relationships in Germany, we do regular online interviews, we get our ASX announcements translated.”
Stefan Müller, DGWA’s CEO, says the culture of approaching German investors differs from that in Australia.
(Quotations from article written and published on AFR by Hans Van Leeuwan, and requoted with our interpretations as answers to those comments.)
Business Listings Group Ryan@businesslistingsgroup.com (Ryan Gibson) have a proven and consistent European marketing approach which includes engagement with our extensive database of investors, connections with finance media, German language translation of corporate interviews with CEO, dissemination of ASX releases throughout EU finance channels, engagement with significant investors and family offices in Europe and the UK.
Dual Listing ASX listed companies on the FSE usually costs around EUR 10,000, with additional proposals available for marketing engagement and starting at EUR 20,000 consulting for listing on the Main market as a new company’s primary listing on the Frankfurt Stock Exchange. Contact firstname.lastname@example.org
Within Australia, what might look like the right stepping stone to equity partners or FSE Law firm, and present themselves as the go public pro’s, just take into considerations that you should:
1. Never give up any equity to the consultants helping you list. (No matter what they promise.)
2. Don’t start a listing with more than EUR 20,000 paid in advance at any given time.
If someone is trying to sell you a listing on the Frankfurt Stock Exchange, Dusseldorf, Vienna, Canada, US, or London such as AIM or AQUIS, please contact me for free, I can help you with due diligence and affirm if they can actually do what they say they can do. Info@fselistings.com
Ryan Gibson, Business Listings Group Ltd.
RSA: +27 12 743 5007
New Zealand : +64098899007
UK : +44 020 3286 6007
USA : +19146133007
If you are looking to dual list your firm on the Frankfurt Stock Exchange, the cost is roughly 10,000 EUR. This includes the market maker, full application and documentation required as an Australian Stock Exchange Company. Business Listings Group (formerly FSE Listings Inc) owned by Ryan Gibson can assist with listing your company. With over 3,000 dual listings in our collective team, we at one point listed almost 10 percent of the total listings on the Frankfurt Stock Exchange. Popular FSE Law, Frankfurt Listings, and Go Public strategies that can also allow for more liquidity for your firm. At the moment, in now 2021, Australian companies again are flocking to the market place. Generally a good newsletter and licensed websites for touting companies now more than ever people are getting investors trading online frankfurt stocks with the captive audience of individuals trading for a living in Europe.
The market is now where the US was 10 years ago, and advancing rapidly, volumes are increasing and more than anytime before, it is a good time for Australians to go public in Frankfurt. According to “www.stockexchangelistings.com” Australian Fintech companies, Mining Companies, Agriculture, and Energy firms are doing very well on the Frankfurt Stock Exchange. We can have you dual listed in 2 weeks, and you can take advantage of this liquidity event within the month.
About Frankfurt Stock Exchange:
Frankfurter Wertpapierborse (FWB®, the Frankfurt Stock Exchange) is one of the world’s largest trading centres for securities. With a share in turnover of more than 85 per cent, it is the largest of Germany’s seven stock exchanges. Deutsche Borse AG operates the Frankfurt Stock Exchange, an entity under public law. In this capacity it ensures the functioning of exchange trading.
The XETRA® trading platform is one of the most internationally connected trading platforms in the world. XETRA is a fully electronic trading system which aggregates buy and sell orders of licensed traders in a central computer. If the number of securities and their price correspond, the orders are automatically matched.
The strong performance of XETRA is illustrated by the fact that more than 90 percent of the entire share trading at German exchanges is now handled through XETRA. One-fifth of these orders are placed by private investors.
Since 2011 trading on the Frankfurt floor runs on XETRA as well, but is still supported by traders. The system calculates the matching prices and specialists overlooks the execution. Specialists function in this environment as market makers.