SME Financing – Listing on PROSPECTS

Firstbridge Prospects Malta Advisory

Small and Medium-sized Enterprises (SMEs) are by and large the driving force of today’s economy. Yet, it is generally quite difficult for SMEs to access alternative sources of finance other than through a bank or their own retained earnings.

The Initiative

The Malta Stock Exchange (MSE) have opened a gateway to access capital markets in an easy and efficient manner. The Prospects Listing initiative is in line with the MSE’s commitment to provide new capital market opportunities, create economies of scale as well as increase business competitiveness and sustainability.

Now, SMEs can benefit from advantages which were previously available solely to larger entities. They are now also able to raise capital by issuing bonds, new shares or selling existing shares to a larger pool of investors.

Eligibility Criteria

  • Any company which satisfies the EU definition of a SME, this includes start-ups;
  • The company must be a public limited company;
  • Must have a good and appropriate corporate governance structure in place;
  • The corporate advisor would need to evaluate the effectiveness of the audit committee, board of directors and compliance functions, as well as assess the internal controls and risk management systems in place and
  • The corporate advisor will also be responsible to carry out a due diligence check on the owners and management of the Applicant.

The Benefits

By being listed on Prospects, SMEs will be able to raise brand awareness and prepare for a sale or issue of equity as part of a succession planning process. This also creates an opportunity for eventual migration to a listing on a regulated market and for new or existing shareholders to exit the market efficiently in the future.
SMEs listed on Prospects will be able to secure capital at a competitive rate and under terms more favourable to the traditional methods of raising finance.

For more information, contact our Financial Advisory team of experts at Firstbridge

http://www.firstbridge.com/contact/

 

More information can also be found on the Malta Stock Exchange’s website at

https://www.borzamalta.com.mt/prospects


Related Service(s): Corporate Advisory