Malta’s financial services sector has been experiencing significant growth, especially after joining the European Union in 2004 and furthering its growth through the adoption of the Euro as its currency in 2008. The Malta Stock Exchange is comparatively small but carries out its functions at a high optimal standard, with proper facilities to carry out the full process of listing and trading securities with an ever-growing international reputation. The Malta Stock Exchange can provide for equity and debt securities trading besides offering access to an adequately supervised secondary market.

Raising capital can be done through several ways and novolegal can assist with the whole process relating to the following:

1.   1. Listing on the Main Market
2.   2. Listing on the Institutional Financial Securities Market (IFSM)
3.   3. Listing on the Prospects Market
4.   4. Initial Public Offering
5.   5. Security Token Offering

Listing on the Main Market

This regulated market offer allows listings to be placed on it in line with EU Directives and offers the benefit of an international market with the opportunity to also passport the listing to other regulated markets within the European Union.

Listing on the IFSM

This market was created to cater for institutional investors, is a recognized part of the European Wholesale Securities Market (EWSM) and is jointly owned by the Irish Stock Exchange and the Malta Stock Exchange. The main benefits of this market are the fact that the listing provides:

1.   1. Access all other European Member State markets
2.   2. Better publicity for the securities offering on an international exchange
3.   3. Credibility due to listing highlighting the recognized exchange’s seal of approval
4.   4. Tax exemptions

Listing on the Prospects Market

This market caters for small and medium-sized enterprises working to raise up to €5 million per issue on this Multilateral Trading Facility administered by the Malta Stock Exchange. Admission to the Prospects Market requires less onerous obligations when drafting the required documentation and has lower costs involved when compared to listing on the other markets.

How can novolegal assist?

novolegal can assist you throughout the listing process with regards to all of the aforementioned types of listings. Our capital markets team provides services to entities seeking listing and entities which are already listed. Particularly, the team focuses on the drafting and negotiation of all legal documentation required as per applicable law and undertakes an advisory role to listed entities to ensure that listing is not only obtained, but also maintained in accordance with applicable standards and law.