Stock Exchange Listing at the Open Market in Frankfurt

The Open Market at the German Stock Exchange ("Deutsche Börse") in Frankfurt is the leading listing platform in Europe for small to medium sized businesses (minimum capital on balance sheet €500,000). Having your business listed there gives you fast and unbureaucratic access to the global capital markets. It also provides independence from traditional bank financing.  If going public is a possibility for your business we are happy to discuss the options with you. Please click the button below to request a free evaluation by a consultant.

What is the Open Market?

'The Open Market' is the leading listing platform for small and medium sized businesses in Europe. Today there are around 9,000 companies listed. The Open Market is the equivalent to AIM (Alternative Investment Market) at the London Stock Exchange. The Open Market has been designed for young, up and coming companies. The regulatory requirements and the costs of the listings are low. While other segments of the stock market are heavily regulated by law, the Open Market is private.

What are the benefits of being listed at the Open Market?

The key benefits of a listing are:

  • Fastest, most cost efficient access to worldwide capital markets with very little regulatory requirements
  • Very few formal requirements. For example, there are no requirements in terms of company age, turnover, industry, volume etc.
  • Minimal transparency requirements before and after the IPO
  • Use of the stock exchange to trade the shares of your company and as a way to value your business
  • Increased visibility with investors; strengthening of your competitive advantage
  • Very efficient trading systems (Parket and Xetra)
  • Your entry to the stock market. Potential to be upgraded to the more advanced markets at a later stage
  • Integration with the most advanced and valuable stock exchange in the world

Specific rules and regulations that do not apply to companies listed at the Open Market

The following well-known requirements from the more advanced segments of the stock market do not apply for companies listed at the Open Market. Not having to comply with these regulations makes it a lot more cost effective and less burdensome to be listed:

  • No Ad Hoc disclosure requirements
  • No need to disclose (even significant) purchase or sales of shares by members of the board or the general management
  • No requirement to publish audited quarterly reports
  • No mandatory/obligatory/compulsory offer or takeover clause
  • No need to publish a prospectus
  • No requirement to maintain so called 'insider list'

Listing Process (Simplified)

To get listed at the open market the company needs to work with a  'Listing Partner'. A listing partner is a service provider who is accredited by the Stock Exchange and is the link between the company to be listed and the Stock Exchange during the listing project. The listing partner has to ensure that the company complies with the regulations of the stock exchange and works in close partnership with them. St Matthew works with one of the leading listing partners in Germany who deal with around 10% of all new Open Market listings.

The company to be listed becomes a UK PLC that is set up and maintained by St Matthew specifically for the listing. This corporate entity is called a 'List Company' or is simply a non-operative holding company. The minimum nominal value per share is €0.1 (10 Euro Cents).

For the company to be listed it needs to have a minimum capital of at least €500,000. This can paid in cash or you can transfer assets of your existing business to the listing company.

Once the company is ready for the listing it's shares are made available in the electronic trading systems of the stock exchange and can then be traded.

The listing partner we work with will also start promoting the business to a well funded network of investors and institutions to create awareness and, hopefully, investment in the newly listed company.

Next Steps

If you are interested in getting your business listed please fill in our free evaluation request form and provide details about your business. One of our consultants will review the information provided and will get in touch to discuss the next steps.