The Malta stock exchange

The Official List is the Malta Stock Exchange's principal market for listed companies. Companies may go to the Official List to raise funds from the public through:

An equity issue which gives the public the opportunity to participate by having a share of the business, or
The issue of preference shares or bonds which enable the public to lend funds to the company.

Companies opting to have their ordinary shares listed on the Official List are required to meet certain criteria before they are admitted to the List. Amongst others, an applicant must:

• Be a public company,
• Have shareholders' funds (less intangibles) of at least Lm250,000,
• Have paid-up capital of at least Lm100,000,
• Have at least 20% of the issued, fully paid-up capital in the hands of the general public,
• Have a trading record in all major sections of its business of at least three years,
• Float at least Lm100,000.

In the case of listing of preference shares or bonds, an applicant must:

• Already have obtained a listing of its ordinary shares,
• Must offer at least Lm1,000,000 in preference shares or bonds,
• See that the total amount of preference shares / bonds does not exceed 100% of shareholders' funds (less intangible assets).

In certain cases the Council Of the Malta Stock Exchange may grant exemptions from the above requirements, depending on circumstances.

The Malta Stock Exchange also offers emerging-growth companies the opportunity to go to the market through the Alternative Companies List (ACL). The ACL is designed primarily to appeal to new ventures, which, because of their very nature, have no track record but have the potential to grow. This market provides such emerging companies, regardless of size or past performance, access to equity or loan capital.

Companies seeking admission to the ACL are required to meet the following main requirements:

• A minimum of Lm75,000 fully paid-up capital is to be raised,
• A floatation limit of Lm75,000,
• 20% of the share capital (reduced to 10% if the share capital exceeds Lm1,000,000) must be in the hands of the public,
• No minimum trading record is required.

In the case of applications for the listing of loan securities, companies are required to issue at least Lm1,000,000 of issued loan capital but are not required to obtain prior listing of their ordinary shares. Moreover, the gearing ratio of total loan capital may exceed 100% of shareholders' funds (less intangible assets).

Grant Thornton can help companies seeking a listing on the Official List or on the Alternative Companies List in many ways. Our services include:

• pre-flotation grooming - helping your company to prepare for the flotation event. This may include initial strategic reviews to assist the decision to float and advising on any structural changes needed to meet the suitability criteria;
• advising on the nature and structure of the fund-raising and the timing, and assisting with the identification and selection of the most suitable stockbroker and other advisors;
• project managing the flotation process including liaison with the Malta Stock Exchange;
• acting as reporting accountants and providing assistance in the preparation of the offering memorandum;
• providing assistance to ensure that you meet the continuing listing requirements, once the company has been admitted to one of the two lists.